Landing the First Job: The Value of Intermediaries in Online Hiring

S-Tier
Journal: Review of Economic Studies
Year: 2016
Volume: 83
Issue: 2
Pages: 810-854

Authors (2)

Christopher T. Stanton (not in RePEc) Catherine Thomas (London School of Economics (LS...)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

Online markets for remote labour services allow workers and firms to contract with each other directly. Despite this, intermediaries—called outsourcing agencies—have emerged in these markets. This article shows that agencies signal to employers that inexperienced workers are high quality. Workers affiliated with an agency have substantially higher job-finding probabilities and wages at the beginning of their careers compared to similar workers without an agency affiliation. This advantage declines after high-quality non-affiliated workers receive good public feedback scores. The results indicate that intermediaries have arisen endogenously to permit a more efficient allocation of workers to jobs.

Technical Details

RePEc Handle
repec:oup:restud:v:83:y:2016:i:2:p:810-854.
Journal Field
General
Author Count
2
Added to Database
2026-01-29