Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/207201 
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7810
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study the effects of a voluntary skill certification scheme in an online freelancing labour market. We show that obtaining skill certificates increases freelancers’ earnings. This effect is not driven by increased freelancer productivity but by decreased employer uncertainty. The increase in freelancer earnings is mostly realised through an increase in the value of the projects won rather than an increase in the number of projects won. Moreover, we find evidence for negative selection to completing skill certificates, which suggests that the freelancers who complete more skill certificates are in a more disadvantaged position in the labour market.
Subjects: 
signaling
human capital
skill validation
skill certificates
micro-credentials
online freelancing
platforms
gig economy
computer-based assessment
JEL: 
J21
J23
J24
J31
I20
Document Type: 
Working Paper
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