IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v209y2024ics0040162524006176.html
   My bibliography  Save this article

Perceived worth of human capital across IT jobseekers in the digital era

Author

Listed:
  • Shakina, Elena
  • Volkova, Natalia V.
  • Paklina, Sofia

Abstract

In an era of technological transformation in labor markets, jobseekers navigate a new landscape of wage uncertainty during the hiring process. Not disclosing wage expectations typically leads to subsequent wage bargaining, which can impact the job matching process and the final agreed-upon wage. This study delves into when jobseekers are more inclined to disclose wage expectations in their online CVs, considering the interplay of human capital accumulation (education, professional skills, work experience) and job-related signals (mobility, job commitment, work schedule/mode). Analyzing over 152,000 anonymous online CVs of tech professionals from 2016 to 2020 in one of the Eastern European countries, the study uses the OLS model with Heckman correction for sample selection bias. The findings reveal trends in wage expectation disclosure. Younger IT jobseekers, along with those who are more educated, skilled, and mobile, tend toward wage bargaining, seldom disclosing wage expectations. Similar effect holds for women jobseekers. Conversely, older jobseekers with basic skills, seeking full-time roles and clear work schedules, are more likely to voluntarily post wage expectations. This research extends compensation literature by focusing on online CVs and exploring a broader range of indicators, reflecting the significant impact of technology-driven social changes on jobseeker behavior in modern labor markets.

Suggested Citation

  • Shakina, Elena & Volkova, Natalia V. & Paklina, Sofia, 2024. "Perceived worth of human capital across IT jobseekers in the digital era," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    • Handle: RePEc:eee:tefoso:v:209:y:2024:i:c:s0040162524006176
    DOI: 10.1016/j.techfore.2024.123819
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162524006176
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2024.123819?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Piazza, Mariangela & Mazzola, Erica & Perrone, Giovanni, 2022. "How can I signal my quality to emerge from the crowd? A study in the crowdsourcing context," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    2. David Lagakos & Benjamin Moll & Tommaso Porzio & Nancy Qian & Todd Schoellman, 2018. "Life Cycle Wage Growth across Countries," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 797-849.
    3. Brenzel, Hanna & Gartner, Hermann & Schnabel, Claus, 2014. "Wage bargaining or wage posting? Evidence from the employers' side," Labour Economics, Elsevier, vol. 29(C), pages 41-48.
    4. Christine L. Exley & Muriel Niederle & Lise Vesterlund, 2020. "Knowing When to Ask: The Cost of Leaning In," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 816-854.
    5. Sunil Mithas & M. S. Krishnan, 2008. "Human Capital and Institutional Effects in the Compensation of Information Technology Professionals in the United States," Management Science, INFORMS, vol. 54(3), pages 415-428, March.
    6. Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
    7. Sunil Mithas & Henry C. Lucas, Jr., 2010. "Are Foreign IT Workers Cheaper? U.S. Visa Policies and Compensation of Information Technology Professionals," Management Science, INFORMS, vol. 56(5), pages 745-765, May.
    8. Claudio Michelacci & Javier Suarez, 2006. "Incomplete Wage Posting," Journal of Political Economy, University of Chicago Press, vol. 114(6), pages 1098-1123, December.
    9. Robert E. Hall & Alan B. Krueger, 2012. "Evidence on the Incidence of Wage Posting, Wage Bargaining, and On-the-Job Search," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(4), pages 56-67, October.
    10. Alekseeva, Liudmila & Azar, José & Giné, Mireia & Samila, Sampsa & Taska, Bledi, 2021. "The demand for AI skills in the labor market," Labour Economics, Elsevier, vol. 71(C).
    11. Konstantinos Angelopoulos & James Malley & Apostolis Philippopoulos, 2017. "Human Capital Accumulation and Transition to Skilled Employment," Journal of Human Capital, University of Chicago Press, vol. 11(1), pages 72-105.
    12. Arendt, Lukasz & Gałecka-Burdziak, Ewa & Núñez, Fernando & Pater, Robert & Usabiaga, Carlos, 2023. "Skills requirements across task-content groups in Poland: What online job offers tell us," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    13. Peter Kuhn, 2014. "The internet as a labor market matchmaker," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-18, May.
    14. Lanfang Deng & Hongyi Li & Wei Shi, 2022. "Willingness for different job mobility types and wage expectations: An empirical analysis based on the online resumes," Papers in Regional Science, Wiley Blackwell, vol. 101(1), pages 135-161, February.
    15. Andreas Leibbrandt & John A. List, 2015. "Do Women Avoid Salary Negotiations? Evidence from a Large-Scale Natural Field Experiment," Management Science, INFORMS, vol. 61(9), pages 2016-2024, September.
    16. repec:iza:izawol:journl:y:2014:p:18 is not listed on IDEAS
    17. Stefano Banfi & Benjamín Villena-Roldán, 2019. "Do High-Wage Jobs Attract More Applicants? Directed Search Evidence from the Online Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 37(3), pages 715-746.
    18. Zoë B. Cullen & Bobak Pakzad‐Hurson, 2023. "Equilibrium Effects of Pay Transparency," Econometrica, Econometric Society, vol. 91(3), pages 765-802, May.
    19. David J Deming & Kadeem Noray, 2020. "Earnings Dynamics, Changing Job Skills, and STEM Careers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 1965-2005.
    20. Faberman, R. Jason & Menzio, Guido, 2018. "Evidence on the relationship between recruiting and the starting wage," Labour Economics, Elsevier, vol. 50(C), pages 67-79.
    21. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    22. David Deming & Lisa B. Kahn, 2018. "Skill Requirements across Firms and Labor Markets: Evidence from Job Postings for Professionals," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 337-369.
    23. Vladimir Gimpelson, 2019. "Age and Wage: Stylized Facts and Russian Evidence," HSE Economic Journal, National Research University Higher School of Economics, vol. 23(2), pages 185-237.
    24. Natalia Levina & Mingdi Xin, 2007. "Research Note---Comparing IT Workers’ Compensation Across Country Contexts: Demographic, Human Capital, and Institutional Factors," Information Systems Research, INFORMS, vol. 18(2), pages 193-210, June.
    25. Duan, Min & Hou, Yali & Zhang, Binzhe & Chen, Chi & Sun, Yufan & Luo, Yingzi & Tan, Tao, 2024. "Skill sets and wage premium: A network analysis based on Chinese agriculture online job offers," Technological Forecasting and Social Change, Elsevier, vol. 201(C).
    26. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    27. Amanda Agan & Bo Cowgill & Laura Katherine Gee, 2020. "Do Workers Comply with Salary History Bans? A Survey on Voluntary Disclosure, Adverse Selection, and Unraveling," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 215-219, May.
    28. repec:bla:econom:v:70:y:2003:i:278:p:233-250 is not listed on IDEAS
    29. Rachel A. Jansen & Anna N. Rafferty & Thomas L. Griffiths, 2021. "A rational model of the Dunning–Kruger effect supports insensitivity to evidence in low performers," Nature Human Behaviour, Nature, vol. 5(6), pages 756-763, June.
    30. Schlösser, Thomas & Dunning, David & Johnson, Kerri L. & Kruger, Justin, 2013. "How unaware are the unskilled? Empirical tests of the “signal extraction” counterexplanation for the Dunning–Kruger effect in self-evaluation of performance," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 85-100.
    31. Bamieh, Omar & Ziegler, Lennart, 2023. "Gender-age differences in hiring rates and prospective wages—Evidence from job referrals to unemployed workers," Labour Economics, Elsevier, vol. 83(C).
    32. Franke, Jörg & Gurtoviy, Ruslan & Mertins, Vanessa, 2016. "Workers’ participation in wage setting: A gift-exchange experiment," Journal of Economic Psychology, Elsevier, vol. 56(C), pages 151-162.
    33. Keith Waters & Shade T. Shutters & Guilherme Ferraz de Arruda, 2022. "Impacts of Skill Centrality on Regional Economic Productivity and Occupational Income," Complexity, Hindawi, vol. 2022, pages 1-7, February.
    34. Soon Ang & Sandra Slaughter & Kok Yee Ng, 2002. "Human Capital and Institutional Determinants of Information Technology Compensation: Modeling Multilevel and Cross-Level Interactions," Management Science, INFORMS, vol. 48(11), pages 1427-1445, November.
    35. Filippi, Emilia & Bannò, Mariasole & Trento, Sandro, 2023. "Automation technologies and their impact on employment: A review, synthesis and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    36. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66(4), pages 281-281.
    37. Marios Karabarbounis & Santiago Pinto, 2018. "What Can We Learn from Online Wage Postings? Evidence from Glassdoor," Economic Quarterly, Federal Reserve Bank of Richmond, issue 4Q, pages 173-189.
    38. Yang, Xiao & Gao, Jian & Liu, Jin-Hu & Zhou, Tao, 2018. "Height conditions salary expectations: Evidence from large-scale data in China," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 501(C), pages 86-97.
    39. Rubinstein, Yona & Weiss, Yoram, 2006. "Post Schooling Wage Growth: Investment, Search and Learning," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 1, pages 1-67, Elsevier.
    40. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eliasson, Kent, 2006. "The Role of Ability in Estimating the Returns to College Choice: New Swedish Evidence," Umeå Economic Studies 691, Umeå University, Department of Economics.
    2. Il-Horn Hann & Jeffrey A. Roberts & Sandra A. Slaughter, 2013. "All Are Not Equal: An Examination of the Economic Returns to Different Forms of Participation in Open Source Software Communities," Information Systems Research, INFORMS, vol. 24(3), pages 520-538, September.
    3. Cinthya G. Caamal Olvera, 2017. "Decreasing returns to schooling in Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(1), pages 27-63.
    4. Prasanna Tambe & Xuan Ye & Peter Cappelli, 2019. "Paying to Program? Engineering Brand and High-Tech Wages," NBER Working Papers 25552, National Bureau of Economic Research, Inc.
    5. Prasanna Tambe & Xuan Ye & Peter Cappelli, 2020. "Paying to Program? Engineering Brand and High-Tech Wages," Management Science, INFORMS, vol. 66(7), pages 3010-3028, July.
    6. Tan, Clifford, 2013. "The contribution of university rankings to country's GDP per capita," MPRA Paper 53900, University Library of Munich, Germany.
    7. Morgan Raux, 2019. "Looking for the "Best and Brightest": Hiring difficulties and high-skilled foreign workers," AMSE Working Papers 1934, Aix-Marseille School of Economics, France.
    8. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    9. Seonho Shin, 2022. "To work or not? Wages or subsidies?: Copula-based evidence of subsidized refugees’ negative selection into employment," Empirical Economics, Springer, vol. 63(4), pages 2209-2252, October.
    10. Paul Dalziel, 2015. "Regional skill ecosystems to assist young people making education employment linkages in transition from school to work," Local Economy, London South Bank University, vol. 30(1), pages 53-66, February.
    11. Jonathan Whitaker & Sunil Mithas & Che-Wei Liu, 2019. "Beauty Is in the Eye of the Beholder: Toward a Contextual Understanding of Compensation of Information Technology Professionals Within and Across Geographies," Information Systems Research, INFORMS, vol. 30(3), pages 892-911, September.
    12. Ravi Bapna & Nishtha Langer & Amit Mehra & Ram Gopal & Alok Gupta, 2013. "Human Capital Investments and Employee Performance: An Analysis of IT Services Industry," Management Science, INFORMS, vol. 59(3), pages 641-658, November.
    13. Tan Kuan Lu, Clifford, 2013. "Do university rankings matter for growth?," MPRA Paper 52705, University Library of Munich, Germany.
    14. Kapelyuk, Sergey & Karelin, Iliya, 2023. "Digital Skills: Classification, Empirical Estimates of the Demand," MPRA Paper 119644, University Library of Munich, Germany.
    15. Keongtae Kim & Sunil Mithas & Jonathan Whitaker & Prasanto K. Roy, 2014. "Research Note —Industry-Specific Human Capital and Wages: Evidence from the Business Process Outsourcing Industry," Information Systems Research, INFORMS, vol. 25(3), pages 618-638, September.
    16. Andrei Ternikov, 2023. "Skill preferences in job postings," Economics Bulletin, AccessEcon, vol. 43(4), pages 1928-1943.
    17. Günalp, Burak & Cilasun, Seyit Mümin & Acar, Elif Öznur, 2013. "Male-Female Labor Market Participation and the Extent of Gender-Based Wage Discrimination in Turkey," MPRA Paper 51503, University Library of Munich, Germany.
    18. Косулиев, Александър, 2019. "Заплатата (Не) Е Посочена. Анализ На Обяви За Работа От Русе [When employers post their wage? Analysis of job adverts from Ruse, Bulgaria]," MPRA Paper 104585, University Library of Munich, Germany.
    19. Gomez-Herrera, Estrella & Mueller-Langer, Frank, 2024. "Does information disclosure affect the gender gap in bidding behavior? Empirical evidence from a natural experiment on a large online labor platform," Labour Economics, Elsevier, vol. 90(C).
    20. Kircher, Philipp & Wright, Randall & Julien, Benoit & Guerrieri, Veronica, 2017. "Directed Search: A Guided Tour," CEPR Discussion Papers 12315, C.E.P.R. Discussion Papers.
    21. A. A. Ternikov, 2023. "Artificial intelligence and the demand for skills in Russia," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 11.

    More about this item

    Keywords

    Human capital; Wage expectation disclosure; Signaling theory; IT professionals;
    All these keywords.

    JEL classification:

    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:209:y:2024:i:c:s0040162524006176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.