Internet and Network Economics

Volume 6484 of the series Lecture Notes in Computer Science pp 515-522

Online Labor Markets

  • John J. HortonAffiliated withHarvard University

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In recent years, a number of online labor markets have emerged that allow workers from around the world to sell their labor to an equally global pool of buyers. The creators of these markets play the role of labor market intermediary by providing institutional support and remedying informational asymmetries. In this paper, I explore market creators’ choices of price structure, price level and investment in platforms. I also discuss competition among markets and the business strategies employed by market creators. The paper concludes with a discussion of the productivity and welfare effects of online labor.