Joint SBEE & DS/CSS Seminar: Emilie Jackson

Availability of the Gig Economy and Long Run Labor Supply Effects for the Unemployed

Abstract:
A growing number of American workers earn income through platforms in the gig economy which provide access to flexible work (e.g. Uber, Lyft, TaskRabbit). This major labor market innovation presents individuals with a new set of income smoothing opportunities when they lose their job. I use U.S. administrative tax records to measure take-up of gig employment following unemployment spells and to evaluate the effect of working in the gig economy on workers' overall labor supply, skill acquisition and earnings trajectory. To do so, I utilize penetration of gig platforms across counties over time, along with variation in individual-level predicted propensities for gig work based on pre-unemployment characteristics. In the short run, I show an increase in gig work following an unemployment spell and that individuals are correspondingly better able to smooth the resulting drop in income. However, individuals stay in these positions and are less likely to return to traditional wage jobs. Thus, several years later, prime-age (25-54) workers' income lags significantly behind comparable individuals who did not have gig work available. Among older workers (55+), I find an increase in gig work corresponds to a postponement of Social Security retirement benefits and a reduction in receipt of Social Security Disability Insurance (SSDI).

Speaker bio:
 

Emilie Jackson is an assistant professor of economics at Michigan State University. Her research is in the fields of public and labor economics, and her recent work uses U.S. tax data to explore the implications of the recent growth in gig employment opportunities (e.g. Uber, Lyft, TaskRabbit, etc.) for individuals facing unemployment shocks. She quantifies the take-up of gig work during unemployment and evaluates the ability to smooth income in the short run. Furthermore, she evaluates the long run implications for workers’ labor supply, skill acquisition and earnings trajectory.

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