Location
Online
Event Website
https://hicss.hawaii.edu/
Start Date
3-1-2023 12:00 AM
End Date
7-1-2023 12:00 AM
Description
There is a widespread debate over how gig workers should be classified. The passage of California Assembly Bill 5 (AB5) - a landmark legislation that aims to correct the misclassification of gig workers, has significant implications for workers, platforms, regulators, and the economy. In this research, leveraging the passage of AB5 as a shock for a natural experiment, we empirically investigate the impact of AB5 on gig workers in California to provide insights. With the data collected from a leading online labor market that connects clients and gig workers, we applied a Difference in Difference approach, and we found that the monthly earnings of gig workers in California, compared to those in other states, have a significantly higher increase after AB5 was signed into law. This effect stems from both increased daily earnings and increased working days. We discuss the implications for policymakers and platforms.
Recommended Citation
Wang, Xunyi; Lin, Yu-Wei; and Han, Wencui, "Does regulation help? The impact of California‘s AB5 on Gig Workers" (2023). Hawaii International Conference on System Sciences 2023 (HICSS-56). 9.
https://aisel.aisnet.org/hicss-56/in/crowd-based_platforms/9
Does regulation help? The impact of California‘s AB5 on Gig Workers
Online
There is a widespread debate over how gig workers should be classified. The passage of California Assembly Bill 5 (AB5) - a landmark legislation that aims to correct the misclassification of gig workers, has significant implications for workers, platforms, regulators, and the economy. In this research, leveraging the passage of AB5 as a shock for a natural experiment, we empirically investigate the impact of AB5 on gig workers in California to provide insights. With the data collected from a leading online labor market that connects clients and gig workers, we applied a Difference in Difference approach, and we found that the monthly earnings of gig workers in California, compared to those in other states, have a significantly higher increase after AB5 was signed into law. This effect stems from both increased daily earnings and increased working days. We discuss the implications for policymakers and platforms.
https://aisel.aisnet.org/hicss-56/in/crowd-based_platforms/9