Find the right digital gig worker to work the right way - Evidence from an Online Experiment

The rapid growth of online gig labour platforms enables employers to source services globally, but the fully digital hiring process introduces uncertainty about worker performance and complicates trust formation. This study examines how ex-ante factors—specifically job post design and freelancer characteristics—influence ex-post performance outcomes. We implement a 2×2 factorial design in which freelancers are invited to apply for identical tasks under varying conditions: experience requirements (entry-level vs. expert) and compensation structure (fixed fee vs. negotiable rate). We analyse both application behaviour and, among those hired, task performance. Results show that allowing negotiation increases acceptance rates for low-paying, low-skill tasks, while higher experience requirements reduce willingness to apply. Freelancers from lower-income regions are more likely to accept invitations. Signalling expert-level requirements and permitting negotiation both encourage higher wage bargaining; however, female freelancers and those from lower-income regions are less likely to negotiate. Performance outcomes reveal a trade-off: freelancers who do not negotiate despite having the option tend to deliver lower quality but higher quantity of work. This pattern is more pronounced among female freelancers and varies with stated experience requirements. Additionally, freelancers from higher-income regions exhibit performance more consistent with their historical records. These findings highlight how simple, scalable job design choices shape participation, bargaining, and performance, with implications for platform design and labour market inequality. While the study focuses on simple tasks and a limited country sample, it offers a foundation for future research on more complex work and broader contexts.