Uber and the labor market

There has been a continuing, strong debate about the size of the gig economy and the pay earned by gig economy workers—specifically as gig work scope and pay relates to Uber, the leading gig economy firm. The debate has been fueled by a number of recent studies using differing and misleading measures of Uber pay and the size of the gig economy. For example, some pay studies present measures of driver earnings that do not deduct Uber commissions, or driver’s expenses, or the cost of benefits Uber drivers must fund on their own (as they are classified as contract workers, not “employees”). Some scope studies look at the raw number of drivers but don’t account for the fact that most ride-hailing drivers drive far fewer than 40 hours a week and only for a few months a year. This paper seeks to provide clarity by offering a framework for understanding various pay and size concepts and a common terminology. Then, using newly available administrative data on Uber drivers, it answers two key questions: (1) what is the hourly pay earned by Uber drivers comparable to hourly wages or compensation of payroll employees (i.e., driver net income after accounting for Uber commissions and fees, vehicle expenses, payroll employees’ benefits, and the interaction of expenses and benefits with the tax code)?; and (2) what is the scale of Uber, and gig work, in the overall economy?

Resource

Access the Research publication

Uber and the labor market
Mishel, L. (2018), Uber and the labor market, Economic Policy Institute.

Metadata

  • Uber
  • transport
  • On-location platform-determined routine work
  • United States
  • 2018
  • Research publication
  • worker demographics, income
  • English
  • Economic Policy Institute (Research institute)
  • Quantitative research
  • Open access
Disclaimer  —  Eurofound aims to keep the information in this database up to date and accurate. If errors are brought to our attention, we will try to correct them. However, Eurofound bears no responsibility or liability whatsoever with regard to the accuracy or content of this database or of external links over which Eurofound services have no control and for which Eurofound assumes no responsibility.