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

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dc.contributor.authorGong, Jing
dc.contributor.authorHong, Yili
dc.contributor.authorZentner, Alejandro
dc.date.accessioned2017-12-28T02:13:24Z
dc.date.available2017-12-28T02:13:24Z
dc.date.issued2018-01-03
dc.description.abstractThis 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.
dc.format.extent9 pages
dc.identifier.doi10.24251/HICSS.2018.644
dc.identifier.isbn978-0-9981331-1-9
dc.identifier.urihttp://hdl.handle.net/10125/50533
dc.language.isoeng
dc.relation.ispartofProceedings of the 51st Hawaii International Conference on System Sciences
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectStrategy, Information, Technology, Economics, and Society (SITES)
dc.subjectOnline labor markets, foreign labor supply, exchange rate, migration
dc.titleVanishing Borders in the Internet Age: The Income Elasticity of the Supply of Foreign Labor in Virtual versus Physical Markets
dc.typeConference Paper
dc.type.dcmiText

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