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What’s the Inside Scoop? Challenges in the Supply and Demand for Information on Employers

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  • Jason Sockin
  • Aaron Sojourner

Abstract

Workers struggle to understand prospective employers. Through experienced workers’ volunteered reviews, Glassdoor is a platform seeking to provide information about prospective employers to job seekers. We find that the content most valuable to job seekers (negative information) is the kind most risky to supply, pointing to a catch-22. Higher ratings increase job applications to smaller firms only, creating an incentive for them to discourage negative reviews. Concerns about employer retaliation discourage negative reviews and motivate employees who do disclose to conceal aspects of their identity, degrading the information’s value. Reputation institutions provide valuable but partial solutions to workers’ information problems.

Suggested Citation

  • Jason Sockin & Aaron Sojourner, 2023. "What’s the Inside Scoop? Challenges in the Supply and Demand for Information on Employers," Journal of Labor Economics, University of Chicago Press, vol. 41(4), pages 1041-1079.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/721701
    DOI: 10.1086/721701
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    Cited by:

    1. Marco Caliendo & Robert Mahlstedt & Aiko Schmei{ss}er & Sophie Wagner, 2023. "The Accuracy of Job Seekers' Wage Expectations," Papers 2309.14044, arXiv.org, revised Sep 2024.
    2. Brian Callaci & Matthew Gibson & Sérgio Pinto & Marshall Steinbaum & Matt Walsh, 2024. "Grads on the Go: The Effect of Franchise No-Poaching Restrictions On Worker Earnings," Upjohn Working Papers 24-405, W.E. Upjohn Institute for Employment Research.
    3. Menaka Hampole & Francesca Truffa & Ashley Wong, 2024. "Peer Effects and the Gender Gap in Corporate Leadership: Evidence from MBA Students," CESifo Working Paper Series 11295, CESifo.

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