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Landing the first job: the value of intermediaries in online hiring

Stanton, Christopher and Thomas, Catherine (2014) Landing the first job: the value of intermediaries in online hiring. CEP Discussion Papers (CEPDP1316). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Abstract

Online markets for remote labor services allow workers and firms to contract with each other directly. Despite this, intermediaries - called outsourcing agencies - have emerged in these markets. This paper shows that agencies signal to employers that inexperienced workers are high quality. Workers affiliated with an agency have substantially higher job-finding probabilities and wages at the beginning of their careers compared to similar workers without an agency affiliation. This advantage declines after high-quality non-affiliated workers receive good public feedback scores. The results indicate that intermediaries have arisen endogenously to permit a more efficient allocation of workers to jobs.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2014 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
JEL classification: D - Microeconomics > D0 - General > D02 - Institutions: Design, Formation, and Operations
F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General
Sets: Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 06 Jan 2015 12:12
Last Modified: 30 Jan 2019 12:18
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/60609

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