What's the Inside Scoop? Challenges in the Supply and Demand for Information on Employers

56 Pages Posted: 16 Jun 2020 Last revised: 21 Aug 2021

See all articles by Jason Sockin

Jason Sockin

University of Pennsylvania

Aaron Sojourner

W.E. Upjohn Institute for Employment Research; University of Minnesota; IZA Institute of Labor Economics

Date Written: September 15, 2020

Abstract

Workers struggle to understand prospective employers. Through experienced workers' volunteered reviews, Glassdoor is a platform that seeks to provide information about prospective employers to jobseekers. We find that the content most valuable to jobseekers (negative information) is the kind most risky to supply, pointing to a Catch-22. Higher ratings increase labor supply to less well-known firms, creating an incentive for smaller firms to discourage negative reviews. Concerns about employer retaliation discourage negative reviews and motivate employees who do disclose to conceal aspects of their identity, degrading the information’s value. Reputation institutions provide valuable but partial solutions to workers' information problems.

Keywords: Imperfect Information, Job Search, Job Satisfaction, Employer Retaliation

JEL Classification: J3, J28, D83, J62

Suggested Citation

Sockin, Jason and Sojourner, Aaron J., What's the Inside Scoop? Challenges in the Supply and Demand for Information on Employers (September 15, 2020). Available at SSRN: https://ssrn.com/abstract=3596666 or http://dx.doi.org/10.2139/ssrn.3596666

Jason Sockin (Contact Author)

University of Pennsylvania ( email )

Philadelphia, PA 19104
United States

Aaron J. Sojourner

W.E. Upjohn Institute for Employment Research ( email )

300 South Westnedge Avenue
Kalamazoo, MI 49007-4686
United States

University of Minnesota

Carlson School of Management
MN
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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