August 12th, 2019

The Geometry of a Wave

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Young workers and the "gig economy"

The emergence of companies like Uber and Taskrabbit has prompted commentators across legal, economic, and policy research spheres to pronounce the beginning of a new era of work, marked by the prevalence of technologically mediated casual work arrangements.

A new report published by AARON MEDLIN and HYE JIN RHO at the Center for Economic and Policy Research casts doubt on these bold claims. Using data from the BLS 2017 Contingent Worker Supplement, it analyzes the preponderance of nonstandard work arrangements for workers between the ages of 21 and 25.

From the report:

"A majority of young workers, ages 21–25, with and without a college degree, are in standard work arrangements. Between 2005 and 2017, the share of young workers in standard work arrangements with a college degree increased from 94.1 to 95.4 percent. Contrary to common expectations, young workers are more likely to hold such jobs compared to the workforce as a whole. Furthermore, data from BLS show that only 1.0 percent of young workers engaged in electronically mediated (gig) work in May 2017.

The much-hyped growth of the gig economy cannot be found in the 2017 survey of nonstandard work arrangements. Even young workers overwhelmingly opted for employment in traditional jobs. Most pressing are the problems of low wages, lack of benefits, and less than full-time hours for all workers without a college degree, but especially young workers without a college degree. These are the labor market policy issues that should be on the table."

Link to the report.

  • In an earlier report co-authored by CEPR and EPI, Eileen Appelbaum, Arne Kalleberg, and Hye Jin Rho analyze the degree of nonstandard employment for older workers, aged 55-65 and 65+: "Older workers are more likely to be independent contractors than any other age group in both 2005 and 2017. However, the share of all older workers who are independent contractors declined from 10.8% of those ages 55–64 and 18.3% of those ages 65+ in 2005, to 9.3% and 16.2%, respectively, in 2017." Link.
  • "In any conference on the future of work, Uber and the gig economy deserve at most a workshop, not a plenary." Lawrence Mishel's 2018 analysis found that Uber wages averaged $11.77 an hour, and that total hours worked in the gig economy "represent a very small share of total hours worked in the overall economy." Link.
  • While part time, temporary, and casual labor may be declining, work induced precarity remains a prominent feature of the contemporary global landscape. For a substantive overview of the nature and development of precarious work, see Guy Standing's 2011 book, The Precariat. Link.
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