Discrimination in Online Contracting: Evidence from Latin America

Posted: 6 Nov 2015

See all articles by Hernan Galperin

Hernan Galperin

USC

Maria Viecens

University of San Andres (UMSA)

Catrihel Greppi

Universidad Nacional de La Plata

Date Written: July 13, 2015

Abstract

We analyze transactional data in Nubelo, a large online labor market serving the Spanish-speaking markets. Our results corroborate the presence of discrimination based on worker’s country of origin. In our most conservative estimate, foreign workers are 15% less likely to obtain contracts in Nubelo compared to domestic workers. Yet our results indicate that this discrimination is statistical rather than taste-based, as it decreases when more information about workers’ quality becomes available to employers. Contrary to some of the findings in traditional labor markets, we do not find evidence of discrimination against women in online hiring. In fact, women have a small advantage, particularly among female employers. However we do observe that women ask for lower wages, particularly when bargaining with male employers. Our findings shed light on how differentials in traditional labor markets play out in online labor environments.

Keywords: online labor market, Spanish-speaking markets, Nubelo, discrimination

JEL Classification: J44

Suggested Citation

Galperin, Hernan and Viecens, Maria and Greppi, Catrihel, Discrimination in Online Contracting: Evidence from Latin America (July 13, 2015). Proceedings of the 9th CPRLatam Conference, Cancun, July 13-14, 2015. Available at SSRN: https://ssrn.com/abstract=2685841

Maria Viecens

University of San Andres (UMSA) ( email )

Vita Dumas 284
(1644) Victoria, Pcia
Buenos Aires, Buenos Aires 1644
Argentina

Catrihel Greppi

Universidad Nacional de La Plata ( email )

7 Nº 776
Buenos Aires, BA 1900
Argentina

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