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.

Measuring the Gig Economy at the State and Local Level

55 views

Published on

Review of research approaches, data resources, and limitations to consider for investigations of gig and independent work at state and regional scales.

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

  • Be the first to like this

Measuring the Gig Economy at the State and Local Level

  1. 1. Measuring the Gig Economy at the State and Local Level: Lots of Questions, Limited Answers + a Few Resources Troy Mix, AICP June 6, 2019 C2ER Annual Conference St. Louis, MO
  2. 2. Is the Gig Economy the Nutritional Guidance of the Economic Research Space? 1 https://www.nbcnews.com/health/health-news/when-it- comes-cholesterol-chicken-bad-red-meat-n1013376 https://www.cnn.com/2019/01/07/economy /gig-economy-katz-krueger/index.html “Understanding Trends in Alternative Work Arrangements in the United States” Lawrence F. Katz, Alan B. Krueger https://www.nber.org/papers/w25425
  3. 3. My plan • Present some practical, research motivating questions about the gig economy • Review a quick first try at analyzing the gig economy in Delaware • Step back and: – Define the gig economy – Suggest resources and research approaches 2
  4. 4. Motivating Question for Understanding the Gig Economy in Delaware • How can we employ more of the hard to employ? – Does the Gig Economy offer promise as a source of income + entrepreneurial skills? – How big a current market? future opportunity? 3 http://udspace.udel.edu/bitstream/handle/19716/24162/S mallBusinessAssistanceLandscapeStudy2018.pdf
  5. 5. Using Nonemployer Statistics to Understand the Gig Economy • Annual series for establishments with no paid employees, but >=$1k receipts • Majority of firms, but <4% of receipts nationally https://census.gov/programs-surveys/nonemployer- statistics/about.html 4
  6. 6. Using Nonemployer Statistics to Understand the Gig Economy in Delaware 5 Modest overall growth Regional differences Substantial shares
  7. 7. Survey of Business Owners & the Gig Economy • Every five year look at share of nonemployer firm activity – Survey paired with administrative records • “SBO provides the only source of detailed and comprehensive data on the status, nature, and scope of women-, minority-, and veteran-owned businesses.” Available at www.census.gov/econ/sbo 6
  8. 8. Survey of Business Owners for Delaware 7
  9. 9. Was this useful for my study? Not really • Provided part of comprehensive picture of small business activity – Role of nonemployer firms often overlooked and lumped in with small businesses more generally • Quickly recreating Gig study in context of broad small business study wasn’t feasible • Could have dug deeper – e.g., Owner Characteristics 8
  10. 10. Measuring Relative Independence vs. Measuring the Gig Economy Work arrangement Paid wage/salary Implicit or explicit contract Predictable schedule Predictable earnings when working Self-employed business owner Some Some Yes Some Day laborer No No No No Platform worker No No No No Freelancer No No No No 9 Abraham, K. G., Haltiwanger, J. C., Sandusky, K., & Spletzer, J. R. (2018). Measuring the gig economy: Current knowledge and open issues (No. w24950). National Bureau of Economic Research.
  11. 11. Problems with Existing Measures and the Gig Economy • Focus tends to be on primary jobs • Conflicting evidence – Administrative data provides stronger support than survey data for gig work • Income often underreported 10 Abraham, K. G., Haltiwanger, J. C., Sandusky, K., & Spletzer, J. R. (2018). Measuring the gig economy: Current knowledge and open issues (No. w24950). National Bureau of Economic Research.
  12. 12. RESEARCH APPROACHES AND RESOURCES 11
  13. 13. My Lessons Learned for Conducting Gig Economy Research • Be Decisive – If you can’t do holistic deep dive, focus on one area • Plenty of potential focus areas – Online platform economy – Workplace protections – Business development programming & support • Push-button sources don’t exist – be flexible/creative 12
  14. 14. Focus on the Online Platform Economy: J.P. Morgan Chase & Company Institute 13 https://www.jpmorganchase.com/corporate/institute/report-ope-2018.htm
  15. 15. New, Proprietary Data Sources: J.P. Morgan Chase & Company Institute 14 https://www.jpmorganchase.com/corporate/institute/report-ope-2018.htm
  16. 16. New, Proprietary Data Sources: J.P. Morgan Chase & Company Institute 15 https://www.jpmorganchase.com/corporate/institute/report-ope-2018.htm
  17. 17. Data Sources Not Built for Economic Research: Chicago Open Data on Transportation Providers 16 http://compassred.com/blog/2019/5/22/want-to-get-a-tip-as-an-uber-driver-dont-pick-up-a-shared-ride
  18. 18. Unknowns in dealing with new data sources • Updated frequently enough to introduce into workflows? • Flexible enough to provide useful economic information? • Available at appropriate scales? 17
  19. 19. Focus on workplace fissure • “contracting and subcontracting out for positions that are typically held by full- time employees” • How should these workers be protected? 18 Three part series starts here: https://medium.com/first-state-insights/selected- government-responses-to-labor-concerns-in-the-modern- gig-economy-ed4c3e67f035
  20. 20. Focus on business development programming and support 19 https://www.sdivsbdc.org/gig-business/ https://hbr.org/2018/03/thriving-in-the-gig-economy
  21. 21. Selected Resources • “Measuring the gig economy: Current knowledge and open issues” – https://www.nber.org/p apers/w24950 • EntreWorks Blog – http://entreworks.net/blog/ 20 http://www.oecd.org/employment/policy-responses-to- new-forms-of-work-0763f1b7-en.htm
  22. 22. Should we care about the gig economy? • Is it a driver of economy? Will it be? – Should it be a focus of attraction efforts? • Is it part of a new reality? – How do we make it work better for individuals and communities? 21
  23. 23. My Lessons Learned for Conducting Gig Economy Research • Be Decisive – If you can’t do holistic deep dive, focus on one area • Plenty of potential focus areas – Online platform economy – Workplace protections – Business development programming & support • Push-button sources don’t exist – be flexible/creative – New data sources likely to emerge 22
  24. 24. Questions for Discussion • What analyses are you being asked to prepare relative to the gig economy? • What challenges have you faced in preparing these analyses? • What programs and policies are your organizations considering relative to the gig economy? • What data will you need to inform these programs/policies? 23
  25. 25. Institute for Public Administration Troy Mix, AICP Associate Director 191A Graham Hall Newark, DE 19716 mix@udel.edu 302-831-6191 www.ipa.udel.edu 24

×