The Impact of Heat Hazard on Gig Economy Workers: Evidence from An On-demand Food Delivery Platform
49 Pages Posted: 1 Nov 2024
Date Written: October 20, 2024
Abstract
This study examines the impact of heatwave exposure on the operational performance and well-being of food delivery couriers, a significant segment of the gig economy workforce. Focusing on a major food delivery platform in China, we utilize a two-step Heckman estimation model to analyze data from the hottest months of July and August in 2015. Our findings reveal that while high temperatures lead to an increase in orders and consumer spending, they also contribute to a decline in operational efficiency which negatively affects courier income. We find that couriers working during heatwaves (when heat index indicates "danger" or "extreme danger" for outdoor activities) experience a 9.1% increase in orders per hour, a 6% increase in working time, but also a 21.8% increase in delivery delays. This results in a disproportionate increase in workload with only an 8.6% rise in hourly income. Furthermore, by integrating our findings with medical research on the impact of heat on human health, we demonstrate that the health costs associated with heat exposure for couriers are significantly higher than their income gains. This highlights the need for policies that address the well-being of gig workers in the face of escalating climate challenges.
Keywords: Climate Change, Global Warming, Corporate Social Responsibility, Responsible Operations, Operation Efficiency, Welling-being, Health, ESG
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