A new DIRSI Working Paper titled Discrimination in online contracting: Evidence from Latin America examines the dynamics of online labor contracting in the region. Written by Hernan Galperin, M. Fernanda Viecens and Catrihel Greppi, the paper is based on internal data from Nubelo, a leading online labor platform serving the Spanish-speaking markets.
The results corroborate that contractors from less developed countries face a hiring penalty: all else equal, they are 15% less likely to be hired compared to contractors from Spain, where most employers in Nubelo are based. Further, contrary to some of the traditional findings in the labor literature, the paper does not find evidence of discrimination against women in online hiring. In fact, women have a small advantage, particularly among female employers. However it is observed that women ask for lower wages, particularly when bargaining with male employers. The findings shed light on how differentials in traditional labor markets play out in online contracting.