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Diasporas and outsourcing : evidence from oDesk and India
 
Author:Ghani, Ejaz; Kerr, William R.; Stanton, Christopher; Collection Title:Policy Research working paper ; no. WPS 6403
Country:India; Date Stored:2013/04/08
Document Date:2013/04/01Document Type:Policy Research Working Paper
SubTopics:Debt Markets; Labor Policies; Labor Markets; E-Business; Technology IndustryLanguage:English
Region:South AsiaReport Number:WPS6403
Volume No:1 of 1  

Summary: This paper examines the role of the Indian diaspora in the outsourcing of work to India. The data are taken from oDesk, the world's largest online platform for outsourced contracts. Despite oDesk minimizing many of the frictions that diaspora connections have traditionally overcome, diaspora connections still matter on oDesk, with ethnic Indians substantially more likely to choose a worker in India. This higher placement is the result of a greater likelihood of choosing India for the initial contract, due in large part to taste-based preferences, and substantial path dependence in location choices. The paper further examines wage and performance outcomes of outsourcing as a function of ethnic connections.

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