a column by William Kerr and Christopher Stanton for VOX: CEPR’s Policy Portal
Online labour platforms such as Upwork facilitate interactions between employers and employees for a wide range of tasks.
This column provides some first evidence on flows and substitution across countries on these new digital platforms. In contrast to classic trade patterns in products, contract placements via Upwork are frequently cross-border and North-South in nature. The findings also suggest that employers leave the platform in response to wage bid increases rather than substituting away from their target search location.
Diaspora networks, in particular the Indian diaspora, still matter for how contracts are placed at the global level.
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