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Diasporas and Outsourcing: Evidence from oDesk and India
Open accessAbstract
We examine the role of the Indian diaspora in the outsourcing of work to India. Our 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 and substantial path dependence in location choices. We further examine wage and performance outcomes of outsourcing as a function of ethnic connections. Our examination of potential rationales for the greater ethnic-based placement of contracts assesses taste-based preferences and information differences. This paper was accepted by Lee Fleming, entrepreneurship and innovation.
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“Ghani et al. (2014) find that relative to other employers, employers of Indian descent are more likely to hire Indian nationals.”
From Designing Online Marketplaces: Trust and Reputation Mechanisms (2016) · cites this paper as Ghani et al. (2014)
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“Looking at the online labor market Upwork (which was called oDesk at the time), Ghani et al. (2014) find that relative to other employers, employers of Indian descent are more likely to hire Indian nationals.”
From Designing Online Marketplaces: Trust and Reputation Mechanisms (2016) · cites this paper as Ghani et al. (2014)
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Metadata
- Authors
- Ghani, E., Kerr, W. R., & Stanton, C.
- Affiliations
- World Bank (US)
- National Bureau of Economic Research (US)
- University of Utah (US)
- Venue
- Management Science
- Published
- 2014-07
- Volume
- 60
- Issue
- 7
- Pages
- 1677-1697
- ISSN
- 0025-1909 (ISSN-L)
- 1526-5501
- OpenAlex
- W2150082503
- Cited by
- 118
- References
- 87
- Citations by year
- 2026: 4 · 2025: 5 · 2024: 3 · 2023: 7 · 2022: 21 · 2021: 9 · 2020: 10 · 2019: 7 · 2018: 14 · 2017: 12 · 2016: 12 · 2015: 9 · 2014: 2
- FWCI
- 40.20
- Type
- journal article
- Language
- en
- Open access
- Licence
- other-oa
- Locations
- Management Science (publishedVersion)
- CrossAsia-Repository (Universität Heidelberg) (acceptedVersion, other-oa)
- Digital Access to Scholarship at Harvard (DASH) (Harvard University) (submittedVersion, cc-by)
- RePEc: Research Papers in Economics (submittedVersion)
- London School of Economics and Political Science Research Online (London School of Economics and Political Science) (submittedVersion)
- University Library Heidelberg
- Topics
- Social Sciences › Sociology and Political Science › Migration and Labor Dynamics
- Social Sciences › Sociology and Political Science › Migration, Ethnicity, and Economy
- Social Sciences › Business, Management and Accounting › Management Information Systems › Outsourcing and Supply Chain Management
- Keywords
- Indian diaspora, outsourcing, online labour platforms, path dependence, location choice, worker wages, employee performance, information asymmetry
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- Ghani, E., Kerr, W. R., & Stanton, C. (2014). Diasporas and Outsourcing: Evidence from oDesk and India. Management Science. https://doi.org/10.1287/mnsc.2013.1832
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