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Research ArticleArticles
Open Access

Do Microcredentials Help New Workers Enter the Market? Evidence from an Online Labor Platform

Otto Kässi and Vili Lehdonvirta
Published online before print March 09, 2022, 0519-10226R3; DOI: https://doi.org/10.3368/jhr.0519-10226R3
Otto Kässi
* Otto Kässi () is a researcher at ETLA Economic Research, a senior researcher at Turku Centre for Labour Studies, University of Turku, and a research associate at the Oxford Internet Institute, University of Oxford.
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  • For correspondence: [email protected]
Vili Lehdonvirta
Vili Lehdonvirta is Professor of Economic Sociology and Digital Social Research at the Oxford Internet Institute, University of Oxford.
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Abstract

We investigate the effects of a voluntary microcredentialing scheme on an online freelancing labor market. Drawing on transaction-level data, we show that obtaining a microcredential increases workers’ earnings. This effect is not driven by increased worker productivity but by decreased employer uncertainty. The increase in worker earnings is realized through an increase in the value of the projects won rather than an increase in the number of projects. We also find that the effect of microcredentials is lower for more experienced workers, which suggests that signaling by microcredentials and other forms of verified information are partial substitutes.

Keywords:
  • signaling
  • human capital
  • skill validation
  • microcredentials
  • online freelancing
  • platforms
  • gig economy
  • computer-based assessment
JEL codes:
  • J21
  • J23
  • J24
  • J31
  • I2

This open access article is distributed under the terms of the CC-BY-NC-ND license. (http://creativecommons.org/licenses/by-nc-nd/4.0) and is freely available online at: http://jhr.uwpress.org

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Journal of Human Resources: 60 (3)
Journal of Human Resources
Vol. 60, Issue 3
1 May 2025
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Do Microcredentials Help New Workers Enter the Market? Evidence from an Online Labor Platform
Otto Kässi, Vili Lehdonvirta
Journal of Human Resources Mar 2022, 0519-10226R3; DOI: 10.3368/jhr.0519-10226R3

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Do Microcredentials Help New Workers Enter the Market? Evidence from an Online Labor Platform
Otto Kässi, Vili Lehdonvirta
Journal of Human Resources Mar 2022, 0519-10226R3; DOI: 10.3368/jhr.0519-10226R3
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Keywords

  • signaling
  • human capital
  • skill validation
  • microcredentials
  • online freelancing
  • platforms
  • gig economy
  • computer-based assessment
  • J21
  • J23
  • J24
  • J31
  • I2
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