Information in online labour markets

Adeline Pelletier and Catherine Thomas

Oxford Review of Economic Policy, 2018, vol. 34, issue 3, 376-392

Abstract: Online labour markets are virtual platforms that solve information problems to enable gains from trade in remote labour services. They make employers and workers aware of each other, and allow them to communicate, contract, and produce remotely. Recent research suggests, however, that organizing production to include remote work remains challenging because employers and workers in these markets continue to lack information that is less easily communicated. Employers appear unable to accurately anticipate the full costs and benefits to them of using the market prior to entry, and continue to have difficulty evaluating worker applications even when experienced in these markets. Information is particularly incomplete when wage arbitrage opportunity is greatest.

Keywords: services trade; trade in tasks; ICT; labour markets; information frictions (search for similar items in EconPapers)
Date: 2018
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