Gong, JingHong, YiliZentner, Alejandro2017-12-282017-12-282018-01-03978-0-9981331-1-9http://hdl.handle.net/10125/50533This 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.9 pagesengAttribution-NonCommercial-NoDerivatives 4.0 InternationalStrategy, Information, Technology, Economics, and Society (SITES)Online labor markets, foreign labor supply, exchange rate, migrationConference Paper10.24251/HICSS.2018.644