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

dc.contributor.author Gong, Jing
dc.contributor.author Hong, Yili
dc.contributor.author Zentner, Alejandro
dc.date.accessioned 2017-12-28T02:13:24Z
dc.date.available 2017-12-28T02:13:24Z
dc.date.issued 2018-01-03
dc.description.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.
dc.format.extent 9 pages
dc.identifier.doi 10.24251/HICSS.2018.644
dc.identifier.isbn 978-0-9981331-1-9
dc.identifier.uri http://hdl.handle.net/10125/50533
dc.language.iso eng
dc.relation.ispartof Proceedings of the 51st Hawaii International Conference on System Sciences
dc.rights Attribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.uri https://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject Strategy, Information, Technology, Economics, and Society (SITES)
dc.subject Online labor markets, foreign labor supply, exchange rate, migration
dc.title Vanishing Borders in the Internet Age: The Income Elasticity of the Supply of Foreign Labor in Virtual versus Physical Markets
dc.type Conference Paper
dc.type.dcmi Text
Files
Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
paper0646.pdf
Size:
877.85 KB
Format:
Adobe Portable Document Format
Description: