abstract: 'By allowing individuals to engage in remote relationships with foreign

  employers, online labor markets have the potential to mitigate the

  inefficiency costs due to the legal barriers and other frictions

  deterring international physical migration. This study investigates how

  the supply of foreign labor in digital and physical markets responds

  differently to monetary incentives. We use a unique data set containing

  information on digital labor flows from a major global online labor

  platform in conjunction with data on physical labor flows. We exploit

  short-term fluctuations in the exchange rate as a source of econometric

  identification: a depreciation of a country''s currency against the U.S.

  dollar increases the incentives of its workers to seek digital and

  physical employment from employers based in the United States. Using a

  panel count data model, we find that monetary incentives induced by

  depreciations of foreign currencies against the U.S. dollar are

  positively associated with the supply of foreign labor in digital

  markets, as expected from the frictionless nature of electronic markets.

  However, we fail to find a positive relationship between monetary

  incentives and the supply of foreign labor in physical markets, which

  might be expected due to the substantial bureaucratic restrictions and

  transaction costs associated with physical migration. We further examine

  how countries'' income and information and communications technologies

  development levels moderate the positive relationship between monetary

  incentives and digital labor flows. Our findings are useful for gauging

  the extent to which digital labor flows can alleviate the economic

  inefficiencies from the restrictions on physical migration.'
affiliation: 'Gong, J (Corresponding Author), Temple Univ, Informat Syst, Dept Management
  Informat Syst, Fox Sch Business, Philadelphia, PA 19122 USA.

  Gong, Jing, Temple Univ, Informat Syst, Dept Management Informat Syst, Fox Sch Business,
  Philadelphia, PA 19122 USA.

  Hong, Yili, Arizona State Univ, Informat Syst, WP Carey Sch Business, Tempe, AZ
  85287 USA.

  Hong, Yili, Arizona State Univ, Digital Soc Initiat, WP Carey Sch Business, Tempe,
  AZ 85287 USA.

  Hong, Yili, Arizona State Univ, Dept Informat Syst, WP Carey Sch Business, Tempe,
  AZ 85287 USA.

  Zentner, Alejandro, Univ Texas Dallas, Naveen Jindal Sch Management, Managerial
  Econ, Richardson, TX 75083 USA.'
author: Gong, Jing and Hong, Yili and Zentner, Alejandro
author-email: 'gong@temple.edu

  hong@asu.edu

  azentner@utdallas.edu'
author_list:
- family: Gong
  given: Jing
- family: Hong
  given: Yili
- family: Zentner
  given: Alejandro
da: '2023-09-28'
doi: 10.1080/07421222.2018.1481661
eissn: 1557-928X
files: []
issn: 0742-1222
journal: JOURNAL OF MANAGEMENT INFORMATION SYSTEMS
keywords: 'Economics of information systems; electronic markets; income elasticity;

  information policy; monetary incentive theory; online labor markets;

  outsourcing; remote employment; digital labor markets'
keywords-plus: 'INFORMATION; MARKETS; ECONOMICS; PREFERENCES; IMMIGRATION; REPUTATION;

  MIGRATION; BUSINESS; COMMERCE; IMPACT'
language: English
number: '3'
number-of-cited-references: '59'
orcid-numbers: 'Hong, Yili/0000-0002-0577-7877

  Gong, Jing/0000-0003-4659-4900'
pages: 866-899
papis_id: 65a9ec6f6a2e5d753f57895392babf61
ref: Gong2018rolemonetary
researcherid-numbers: 'Hong, Yili/M-6093-2016

  N''Dri, Amoin Bernadine/IWD-7811-2023

  Gong, Jing/N-1374-2016'
times-cited: '9'
title: Role of Monetary Incentives in the Digital and Physical Inter-Border Labor
  Flows
type: Article
unique-id: WOS:000448730500008
usage-count-last-180-days: '6'
usage-count-since-2013: '59'
volume: '35'
web-of-science-categories: 'Computer Science, Information Systems; Information Science
  \& Library

  Science; Management'
year: '2018'