Driving the Gig Economy

Katharine Abraham, John Haltiwanger, Claire Y. Hou, Kristin Sandusky and James Spletzer

No 32766, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using rich administrative tax data, we explore the effects of the introduction of online ridesharing platforms on entry, employment and earnings in the Taxi and Limousine Services industry. Ridesharing dramatically increased the pace of entry of workers into the industry. New entrants were more likely to be young, female, White and U.S. born, and to combine earnings from ridesharing with wage and salary earnings. Displaced workers have found ridesharing to be a substantially more attractive fallback option than driving a taxi. Ridesharing also affected the incumbent taxi driver workforce. The exit rates of low-earning taxi drivers increased following the introduction of ridesharing in their city; exit rates of high-earning taxi drivers were little affected. In cities without regulations limiting the size of the taxi fleet, both groups of drivers experienced earnings losses following the introduction of ridesharing. These losses were ameliorated or absent in more heavily regulated markets.

JEL-codes: J20 J30 J40 J62 (search for similar items in EconPapers)
Date: 2024-08
New Economics Papers: this item is included in nep-iue, nep-lab and nep-ure
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Related works:
Working Paper: Driving the Gig Economy (2024)
Working Paper: Driving the Gig Economy (2024)
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