The Effect of Gig Workers on Stock Prices

37 Pages Posted: 12 Dec 2018

See all articles by Kelly Carter

Kelly Carter

Morgan State University - Department of Accounting and Finance

Date Written: December 10, 2018

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

Suggested Citation

Carter, Kelly, The Effect of Gig Workers on Stock Prices (December 10, 2018). Available at SSRN: https://ssrn.com/abstract=3299627 or http://dx.doi.org/10.2139/ssrn.3299627

Kelly Carter (Contact Author)

Morgan State University - Department of Accounting and Finance ( email )

Baltimore, MD 21251
United States
(443) 885-4472 (Phone)
(443) 885-8251 (Fax)

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