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Diasporas and outsourcing: evidence from oDesk and India

Ghani, Ejaz, Kerr, William R. and Stanton, Christopher (2014) Diasporas and outsourcing: evidence from oDesk and India. Management Science, 60 (7). pp. 1677-1697. ISSN 0025-1909

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Identification Number: 10.1287/mnsc.2013.1832

Abstract

We examine the role of the Indian diaspora in the outsourcing of work to India. Our data are taken from oDesk, the world's largest online platform for outsourced contracts. Despite oDesk minimizing many of the frictions that diaspora connections have traditionally overcome, diaspora connections still matter on oDesk, with ethnic Indians substantially more likely to choose a worker in India. This higher placement is the result of a greater likelihood of choosing India for the initial contract and substantial path dependence in location choices. We further examine wage and performance outcomes of outsourcing as a function of ethnic connections. Our examination of potential rationales for the greater ethnic-based placement of contracts assesses taste-based preferences and information differences.

Item Type: Article
Official URL: http://pubsonline.informs.org/journal/mnsc
Additional Information: © 2014 INFORMS
Divisions: Management
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Sets: Departments > Management
Research centres and groups > Managerial Economics and Strategy Group
Date Deposited: 14 Aug 2014 15:46
Last Modified: 20 Jan 2020 05:28
URI: http://eprints.lse.ac.uk/id/eprint/59021

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