When Gig Workers No Longer Gig : The Impact of California Assembly Bill 5 on the Online Labor Market
There is a widespread debate over how gig workers should be classified. The passage of California Assembly Bill 5 (AB5)—a landmark legislation that aims to correct the misclassification of gig workers—has significant implications for workers, platforms, regulators, and the economy. In this research, leveraging the passage of AB5 as a shock for a natural experiment, we provide insights by empirically investigating the impact of AB5 on gig workers in California. With the data collected from a leading online labor market that connects employers and gig workers, we applied a difference-in-differences approach and found that the monthly earnings of gig workers in California, compared to those in other states, have a significantly higher increase after AB5 was signed into law. This effect stems from an increase in both daily earnings and in working days. We further investigated the heterogeneity of the impact and found that the positive effect on earnings is stronger for more experienced workers, suggesting the effect is partly driven by the demand for high-quality workers. We also found stronger effects for minority and less educated workers, indicating AB5 protects lower-income workers, similar to the minimum wage law. In addition, we found that the gig labor supply also has a higher increase in California after the enactment of AB5, compared to other states. Thus, the increase in income did not cause reduced employment. We discuss the implications for policymakers and platforms
Year of publication: |
2023
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Authors: | Wang, Xunyi ; Lin, Yu-Wei ; Han, Wencui ; Qiu, Liangfei |
Publisher: |
[S.l.] : SSRN |
Description of contents: | Abstract [papers.ssrn.com] |
Saved in:
Extent: | 1 Online-Ressource |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 3, 2023 erstellt Volltext nicht verfügbar |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014254091
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