What's the Inside Scoop? Challenges in the Supply and Demand for Information about Job Attributes
59 Pages Posted: 16 Jun 2020 Last revised: 24 Feb 2021
Date Written: September 15, 2020
Workers struggle to understand prospective jobs and employers. Glassdoor is an online platform that offers jobseekers information about prospective employers from other workers' volunteered reviews. Analyzing Glassdoor data reveals how jobseekers share and use this information. Jobseekers classify reviews of employers as more helpful if they contain more-negative information, but such information is relatively scarce. Volunteers supplying negative information are more likely to conceal aspects of their identity, degrading the supplied information's value. Concealment is more likely in reviews for smaller firms and from current employees, where retaliation risk is higher. While workers demand information about some workplace attributes more than others, supply and demand for such information is imbalanced. Finally, higher ratings increase firm labor supply, consistent with incentives to retaliate. Reputation institutions provide valuable but partial solutions to workers' information problems.
Keywords: Imperfect Information, Job Search, Job Satisfaction, Retaliation Risks
JEL Classification: J3, J28, D83, J62
Suggested Citation: Suggested Citation