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CentrePiece article
Online hiring of offshore workers: the value of intermediaries
Christopher T. Stanton and Catherine Thomas
February 2016
Paper No' CEPCP468:
Full Paper (pdf)

CentrePiece 20 (3) Winter 2015/2016

JEL Classification: F16; J30; D02; O30

Tags: labor market intermediation; offshoring; incomplete information

‘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.

This article summarises ‘Landing the First Job: The Value of Intermediaries in Online Hiring’ by Christopher Stanton and Catherine Thomas, CEP Discussion Paper No.1316, November 2014.