University of Cambridge > > Economics & Policy Seminars, CJBS > EXPERIENCE MARKETS: AN APPLICATION TO OUTSTANDING AND HIRING


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Employers in a large online global labour market learn their value for the market only through experimenting. Early experience affects employer selection into posting further jobs, increases the perceived value of using the market, and alters how employers evaluate individual workers.

The majority of employers quickly learn that the market is less valuable to them that their next best alternative and exit the market. Participation decisions are relatively insensitive to variation in the hourly wage bids that employers receive and to learning-by-doing in the market.

Low market take up rates are consistent with there being unanticipated and heterogeneous employer costs of reorganizing to coordinate remote and fragmented stages of production.

This talk is part of the Economics & Policy Seminars, CJBS series.

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