The recently launched LinkedIn Salary product has been designed with the goal of providing compensation insights to the world's professionals and thereby helping them optimize their earning potential. We describe the overall design and architecture of the statistical modeling system underlying this product. We focus on the unique data mining challenges while designing and implementing the system, and describe the modeling components such as Bayesian hierarchical smoothing that help to compute and present robust compensation insights to users. We report on extensive evaluation with nearly one year of de-identified compensation data collected from over one million LinkedIn users, thereby demonstrating the efficacy of the statistical models. We also highlight the lessons learned through the deployment of our system at LinkedIn.
Privacy : Preserving user privacy is crucial when collecting compensation data. We encountered unique challenges associated with privacy and security while designing our system. Our methodology for addressing these challenges through a combination of techniques such as encryption, access control, de-identification, aggregation, and thresholding is described in @cite_11 . Please refer this paper for a discussion of different privacy techniques (in contrast with our approach), and an empirically study of the tradeoffs between privacy and modeling needs.
@cite_11
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We study a mechanism design problem of privacy- preserving data collection with privacy protection uncertainty. A data collector wants to collect enough data to perform a certain computation that benefits the individuals who contribute the data, with the possibility of individual privacy leakage. The data collector adopts a privacy-preserving mechanism by adding some random noise to the computation result, which reduces the accuracy of the computation. Individuals decide whether to contribute data based on the potential benefit and the possible privacy cost induced by the mechanism. Due to the intrinsic uncertainty involved in privacy protection, we model individuals' privacy-aware participation using the prospect theory, which more accurately models individuals' behavior under uncertainty than the traditional expected utility theory. We show that the data collector's utility maximization problem involves a polynomial of high and fractional order, which is difficult to solve analytically. We get around this issue by proposing an approximation method, which allows us to obtain a closed form unique solution of the data collector's decision problem. We numerically show that the approximation error is small when the number of individuals is large. By comparing with the results under the expected utility theory, we conclude that a data collector who considers the more realistic prospect theory modeling should adopt a stricter privacy-preserving mechanism to boost her utility.