Start Date
10-12-2017 12:00 AM
Description
Online platforms have been argued to lower search costs thus making them useful for employers to find employees and vice-versa. While a body of research has examined the effect of platforms on number of metrics, the effect that they will have on local labor market metrics (such as effects on employment and wages) is not known. In this paper, we examine the effect of the staggered introduction of Craigslist across different Metropolitan Statistical Areas in the US. We provide evidence that rather than the platform increasing competition to the local workforce, the introduction of the platform raised both employment and wages for tradable jobs (defined as jobs that can be outsourced and performed from other locations) in the region.
Recommended Citation
Ganju, Kartik Krishna and Bassellier, Genevieve, "The Impact of Online Platforms on Labor Markets" (2017). ICIS 2017 Proceedings. 4.
https://aisel.aisnet.org/icis2017/IT-and-Social/Presentations/4
The Impact of Online Platforms on Labor Markets
Online platforms have been argued to lower search costs thus making them useful for employers to find employees and vice-versa. While a body of research has examined the effect of platforms on number of metrics, the effect that they will have on local labor market metrics (such as effects on employment and wages) is not known. In this paper, we examine the effect of the staggered introduction of Craigslist across different Metropolitan Statistical Areas in the US. We provide evidence that rather than the platform increasing competition to the local workforce, the introduction of the platform raised both employment and wages for tradable jobs (defined as jobs that can be outsourced and performed from other locations) in the region.