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Online hiring of offshore workers: the value of intermediaries

Author

Listed:
  • Christopher Stanton
  • Catherine Thomas

Abstract

'Old boy networks' have not been rendered obsolete by modern communications technology. That is one of the conclusions of a study of global online labour markets by Christopher Stanton and Catherine Thomas. Their research shows that offline and local social ties help to increase the value of these markets. The study begins by noting that while the internet is connecting firms with remote workers, it remains difficult for people to get their first job. To address this problem, new intermediaries - 'agencies' - are enabling inexperienced workers to signal their quality to potential employers. Agency affiliation is especially important in technical work where worker quality is unknown until the job is done.

Suggested Citation

  • Christopher Stanton & Catherine Thomas, 2016. "Online hiring of offshore workers: the value of intermediaries," CentrePiece - The magazine for economic performance 468, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepcnp:468
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    File URL: https://cep.lse.ac.uk/pubs/download/cp468.pdf
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    More about this item

    Keywords

    Labor market intermediation; Offshoring; Incomplete information;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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