TITLE

Diasporas and Outsourcing: Evidence from oDesk and India

AUTHOR(S)
Ghani, Ejaz; Kerr, William R.; Stanton, Christopher
PUB. DATE
July 2014
SOURCE
Management Science;Jul2014, Vol. 60 Issue 7, p1677
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
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.
ACCESSION #
99111394

 

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