Gig-Labor: Trading Safety Nets for Steering Wheels

Abstract

Using administrative data on unemployment insurance matched with the credit profiles for individuals in the U.S., we show that laid-off employees with access to Uber are less likely to apply for UI benefits, rely less on household debt, and experience fewer delinquencies. Our empirical strategy exploits both the staggered entry of Uber across cities and the differential benefit of Uber's entry across car owners based on car age, a key eligibility requirement of the platform. We conclude that the introduction of Uber had a profound effect on labor markets, changing the way employees respond to job loss.

Keywords: gig-economy, labor markets, unemployment insurance, household debt, credit delinquencies

JEL Classification: D10, E24, H53, J23, J65