Labor market equilibration: Evidence from Uber

Using a city-week panel of U.S. ride-sharing markets created by Uber, we estimate the effects of sudden fare changes on market outcomes, fo-cusing on the supply-side. We explore both the short-run dynamics of market adjustment, as well as the eventual long-run equilibrium. We find that the driver hourly earnings rate—essentially the market equilib-rium wage—moves immediately in the same direction as a fare change, but that these effects are short-lived. The prevailing wage returns to its pre-change level within about 8 weeks. This return is achieved primar-ily through permanent changes in driver " utilization, " or the fraction of hours-worked that are spent transporting passengers. Our results imply that the driver supply of labor to ride-sharing markets is highly elastic, most likely because drivers face no quantity restrictions on how many hours to supply and new drivers face minimal barriers to entry.


Access the Research publication

Labor market equilibration: Evidence from Uber
Hall, J., Horton, J. and Knoepfle, D. (2017), Labor market equilibration: Evidence from Uber, New York University Working Paper.


  • Research publication
  • United States
  • Yes
  • transport
  • On-location platform-determined routine work
  • Uber
  • worker demographics, income, work intensity, working time quality, work-life balance
  • English
  • New York University (Research institute)
  • Quantitative research
  • 2017
  • Open access
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