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Diasporas and outsourcing: evidence from oDesk and India

Ejaz Ghani (), William Kerr () and Christopher Stanton

No 6403, Policy Research Working Paper Series from The World Bank

Abstract: This paper examines the role of the Indian diaspora in the outsourcing of work to India. The 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, due in large part to taste-based preferences, and substantial path dependence in location choices. The paper further examines wage and performance outcomes of outsourcing as a function of ethnic connections.

Keywords: Debt Markets; E-Business; Labor Policies; Labor Markets; Technology Industry (search for similar items in EconPapers)
Date: 2013-04-01
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Related works:
Journal Article: Diasporas and Outsourcing: Evidence from oDesk and India (2014) Downloads
Working Paper: Diasporas and Outsourcing: Evidence from oDesk and India (2012) Downloads
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