What’s the Inside Scoop? Challenges in the Supply and Demand for Information on Employers

A-Tier
Journal: Journal of Labor Economics
Year: 2023
Volume: 41
Issue: 4
Pages: 1041 - 1079

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Workers struggle to understand prospective employers. Through experienced workers’ volunteered reviews, Glassdoor is a platform seeking to provide information about prospective employers to job seekers. We find that the content most valuable to job seekers (negative information) is the kind most risky to supply, pointing to a catch-22. Higher ratings increase job applications to smaller firms only, creating an incentive for them to discourage negative reviews. Concerns about employer retaliation discourage negative reviews and motivate employees who do disclose to conceal aspects of their identity, degrading the information’s value. Reputation institutions provide valuable but partial solutions to workers’ information problems.

Technical Details

RePEc Handle
repec:ucp:jlabec:doi:10.1086/721701
Journal Field
Labor
Author Count
2
Added to Database
2026-01-29