The interplay between wages and online reviews on the labor market


Bayerl, Andreas ; Goldenberg, Jacob ; Shapira, Daniel ; Stahl, Florian



URN: urn:nbn:de:bsz:180-madoc-623217
Dokumenttyp: Präsentation auf Konferenz
Erscheinungsjahr: 2021
Veranstaltungstitel: 43. ISMS Marketing Science Conference
Veranstaltungsort: Online
Veranstaltungsdatum: 03.-05.06.2021
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Sprache der Veröffentlichung: Englisch
Einrichtung: Fakultät für Betriebswirtschaftslehre > Quantitatives Marketing und Konsumentenverhalten (Stahl 2013-)
Fachgebiet: 650 Management
Abstract: We spend one third of our lives at work. The decision about our workplace is therefore an important part of our well-being and our general life satisfaction. Given this importance, it is likely that job seekers will hope to find information about potential employers online, just as they might look for hotel reviews before their next vacation. To this end, various platforms have set out to collect relevant insights for such job seekers. The platforms collect what we call Employee-Generated Content (EGC), i.e. online reviews of verified employees. Against this background, we investigate first the producers (senders) and then the consumers (receivers) of online employer reviews. In the context of reviewing your employer and anonymously stating what your job satisfaction is, income is something to look at. In this paper, we assess this relationship by focusing on the association between the likelihood to recommend an employer in an online review and the reviewer’s salary. Using around 4 Mio verified online employer reviews together with 500,000 verified salary data points from the European market leader for collecting EGC, we document that in certain salary ranges more money can lead to a decreased likelihood to recommend the employer. We are able to explain our finding through a bootstrapped mediation analysis. What we find is, that it is not all about the money, but also about other work-related factors at the company. Second, we focus on the consumers or receivers of online employer reviews. Using data from an applicant tracking system, we bring together information about more than 3 Mio application for 90,000 job openings at around 2,000 firms and the accumulated electronic word-of-mouth (eWOM) of the respective job-offering company. We find a positive association between EGC of a company and the demand for that company on the job market.







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