Diasporas and Outsourcing: Evidence from oDesk and India

Ghani, Ejaz ; Kerr, William R. ; Stanton, Christopher

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Abstract

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.

Document type: Working paper
Place of Publication: Washington, D.C.
Date: 2013
Version: Secondary publication
Date Deposited: 01 Jul 2015
Number of Pages: 42
Faculties / Institutes: Miscellaneous > Individual person
DDC-classification: Economics
Controlled Keywords: Indien, Diaspora, Outsourcing
Uncontrolled Keywords: Indien, Indische Diaspora, Outsourcing / India, Indian Diaspora, Outsourcing
Subject (classification): Economics
Countries/Regions: India
Additional Information: © World Bank. https://openknowledge.worldbank.org/handle/10986/13200 License: CC BY 3.0 Unported
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