Please use this identifier to cite or link to this item: http://hdl.handle.net/10125/50533

Vanishing Borders in the Internet Age: The Income Elasticity of the Supply of Foreign Labor in Virtual versus Physical Markets

File Size Format  
paper0646.pdf 877.85 kB Adobe PDF View/Open

Item Summary

Title:Vanishing Borders in the Internet Age: The Income Elasticity of the Supply of Foreign Labor in Virtual versus Physical Markets
Authors:Gong, Jing
Hong, Yili
Zentner, Alejandro
Keywords:Strategy, Information, Technology, Economics, and Society (SITES)
Online labor markets, foreign labor supply, exchange rate, migration
Date Issued:03 Jan 2018
Abstract:This study investigates how the supply of foreign labor in virtual versus physical markets responds to monetary incentives using information on digital labor flows from a major global online labor platform for IT services in conjunction with data on physical labor flows into the United States. We use exogenous changes in the exchange rate as a source of identification: a depreciation of a country’s currency against the US dollar exogenously increases the incentives of its workers to seek employment in the United States. Our results suggest that monetary incentives, measured as a depreciation of a country’s currency against the US dollar, have a substantial impact on the supply of foreign labor in virtual markets. However, we do not find that monetary incentives have a statistically significant impact on the supply of foreign labor in physical markets, which might be expected since physical migration faces substantial bureaucratic restrictions and transaction costs.
Pages/Duration:9 pages
URI:http://hdl.handle.net/10125/50533
ISBN:978-0-9981331-1-9
DOI:10.24251/HICSS.2018.644
Rights:Attribution-NonCommercial-NoDerivatives 4.0 International
https://creativecommons.org/licenses/by-nc-nd/4.0/
Appears in Collections: Strategy, Information, Technology, Economics, and Society (SITES)


Please email libraryada-l@lists.hawaii.edu if you need this content in ADA-compliant format.

This item is licensed under a Creative Commons License Creative Commons