The Effect of Gig Workers on Stock Prices

Abstract

U.S. News estimates that gig workers comprise one-third of the workforce. Moreover, by 2028, gig workers are projected to form the majority of the workforce. Thus, understanding their effect on shareholder value is important. Overall, I find that the typical gig worker erodes shareholder value by 0.35 percent, or almost $1.5 million. This result can be explained by the incentive of gig workers to hoard their human capital so as to increase their likelihood of receiving follow-on contracts. This result also suggests that hiring gig workers is an agency problem.

Keywords: G30, G34, J24, J42

JEL Classification: Gig Economy, Gig Worker, Value of Labor, Worker Deaths