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The Effects of Self-Advertising in a Labor Market: Evidence from a Field Experiment

Published: 17 December 2024 Publication History

Abstract

We study the introduction of advertising in an online labor market where applicants could bid to "boost" their applications. Applicants with the highest bids received a prominent position at the top of the employer's application list. The platform randomly varied whether the employer was exposed to boosted applications, and within the exposure group, whether the employer was shown a disclosure that the application was boosted. We find that boosted applications are positively selected, and that boosting an application increases the likelihood of an applicant being hired by about 40%. The experimental design allows us to estimate that about 80% of this increase was due to the ranking effect---boosted applications ranking higher---and 20.2% was due to the signaling effect---the disclosure that the application is boosted. The full version of the paper can be accessed at https://apostolos-filippas.com/papers/boosted.pdf.

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  1. The Effects of Self-Advertising in a Labor Market: Evidence from a Field Experiment

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        cover image ACM Conferences
        EC '24: Proceedings of the 25th ACM Conference on Economics and Computation
        July 2024
        1340 pages
        ISBN:9798400707049
        DOI:10.1145/3670865
        Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for third-party components of this work must be honored. For all other uses, contact the owner/author(s).

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        Published: 17 December 2024

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        1. sponsored advertising
        2. online labor markets
        3. experimentation

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