Client Clustering For Hiring Modeling In Work Marketplaces

An important problem that online work marketplaces face is grouping clients into clusters, so that in each cluster clients are similar with respect 10 their luring criteria. Such a separation allows the marketplace to "learn" more accurately the hiring criteria in each cluster and recommend the right contractor to each client, for a successful collaboration. We propose a Maximum Likelihood definition of the "optimal" client clustering along with an efficient Expectation-Maximization clustering algorithm that can be applied in large marketplaces. Our results on the job hirings at oDesk over a seven-month period show that our client-clustering approach yields significant gains compared to "learning" the same hiring criteria for all clients. In addition, we analyze the clustering results to find interesting differences between the hiring criteria in the different groups of clients.