Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Harpel measuring the gig economy

71 views

Published on

Gig economy research

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

Harpel measuring the gig economy

  1. 1. Measuring the Gig Economy at the State and Local Level Ellen Harpel, Ph.D. C2ER Annual Conference St. Louis, MO June 2019
  2. 2. © 2019 BUSINESS DEVELOPMENT ADVISORS 2
  3. 3. © 2019 BUSINESS DEVELOPMENT ADVISORS 3 What IS gig and independent work? How can we measure it? What does gig and independent work look like in the Washington region?
  4. 4. What does “gig and independent” mean? Work conducted outside of a traditional employer-employee relationship Gig and independent work is often: ◦ temporary or project-based ◦ self-directed and requires the worker to be both employer & employee ◦ changeable day to day ◦ characterized by freedom and flexibility . . . ◦ . . . but also insecurity and unpredictability. Gig and independent work encompasses many types of people working in a variety of ways for different purposes © 2019 BUSINESS DEVELOPMENT ADVISORS 4
  5. 5. Gig and independent work is diverse © 2019 BUSINESS DEVELOPMENT ADVISORS 5
  6. 6. Non- employer establish- ments U.S., States, Counties, MSA, and CSA tables start from 1997 to current year By form of organization, NAICS, receipts © 2019 BUSINESS DEVELOPMENT ADVISORS 6
  7. 7. Non-farm proprietors BEA Local Area Personal Income Another look at money earned outside of wage and salary employment Not employment-based definition, so captured proprietors who hire others © 2019 BUSINESS DEVELOPMENT ADVISORS 7
  8. 8. Self- employed US Census class of worker Self-employment as primary job Industry, age, gender, hours worked © 2019 BUSINESS DEVELOPMENT ADVISORS 8 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Detroit Philadelphia Boston W ashingtonChicago M inneapolis Seattle DallasNew YorkHouston AtlantaPhoenix San Francisco Los Angeles M iam i Figure 12: Self-Employment as Percentage of Total Employment, 15 Largest Metros, 2007 and 2016 % Self-Employed 2007 % Self-Employed 2016 Source: US Census Bureau (American Community Survey - IPUMS-USA); The Stephen S. Fuller Institute at the Schar School, GMU
  9. 9. Schedule C filers - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Under $1 $1 - $9999 $10000 - $24999 $25000 - $49999 $50000 - $74999 $75000 - $99999 $100000 - $199999 $200000+ Number of Tax Returns by Income Range and Select Source, Washington Region, 2015 All returns Number of returns with salaries and wages Number of returns with business or professional net income (less loss) Source: Statistics of Income, Internal Revenue Service; The Stephen S. Fuller Institute at the Schar School, GMU IRS Statistics of Income Income from all sources, wages & salaries, business or professional net income (Schedule C) © 2019 BUSINESS DEVELOPMENT ADVISORS 9 Business or professional net income (less loss) amount Salaries and wages amount $1 - $9999 17.3% 76.9% $10000 - $24999 11.0% 77.3% $25000 - $49999 3.1% 84.1% $50000 - $74999 2.0% 81.0% $75000 - $99999 1.8% 79.0% $100000 - $199999 2.3% 77.6% $200000+ 3.7% 57.8% Total 3.2% 71.2% Schedule C Income, Salaries & Wages as a % of Total Income, Washington Region, 2015
  10. 10. Gig and independent work in the Washington region: Is important to our region’s leading industries ◦ 13% of all workers in professional and technical services are self- employed ◦ 20% of the region’s non-employer establishments are in this sector Engages 10-15% of the workforce but only generates 3% of income and 10% of earnings Demonstrates declining average income or earnings Appears to be largely supplemental work or side businesses © 2019 BUSINESS DEVELOPMENT ADVISORS 10
  11. 11. Mostly positive, but not always and not for everyone Pros: ◦ New work options beyond employed/unemployed ◦ New opportunities for work and earnings for those who face barriers in the job market ◦ Greater control, flexibility, and income potential ◦ A choice not a necessity Cons: ◦ Less secure and more unpredictable income ◦ Less likely to have health insurance or a retirement account; not covered by unemployment insurance ◦ A necessity rather than a choice for some ◦ Some business models that shift costs and risk to “independent contractors” ◦ What will happen during the next downturn? © 2019 BUSINESS DEVELOPMENT ADVISORS 11
  12. 12. Concluding thoughts Gig and independent work is not an economic driver, but it will influence the region’s competitiveness. Establishments of all types are likely to expand their engagement of gig and independent workers as a complement to their employee workforce. Preparing for independent work is becoming a career imperative. © 2019 BUSINESS DEVELOPMENT ADVISORS 12
  13. 13. Contact: Ellen Harpel 571/212.3397 eharpel@businessdevelopmentadvisors.com www.businessdevelopmentadvisors.com www.smartincentives.org http://sfullerinstitute.gmu.edu/research/reports/nature-of-work/ @SmartIncentives and @FullerInstitute 13© 2019 BUSINESS DEVELOPMENT ADVISORS
  14. 14. Thank you! © 2019 BUSINESS DEVELOPMENT ADVISORS 14

×