The Impact of Heat Hazard on Gig Economy Workers: Evidence from An On-demand Food Delivery Platform

49 Pages Posted: 1 Nov 2024

See all articles by Run Ge

Run Ge

Shanghai University of Finance and Economics

Susan F. Lu

Purdue University - Krannert School of Management

Wenzheng Mao

Advanced Institute of Business, Tongji University

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

Suggested Citation

Ge, Run and Lu, Susan Feng and Mao, Wenzheng, The Impact of Heat Hazard on Gig Economy Workers: Evidence from An On-demand Food Delivery Platform (October 20, 2024). Available at SSRN: https://ssrn.com/abstract=4993644 or http://dx.doi.org/10.2139/ssrn.4993644

Run Ge

Shanghai University of Finance and Economics ( email )

777 Guoding Road
Shanghai, AK Shanghai 200433
China

HOME PAGE: http://sites.google.com/view/gerun/home

Susan Feng Lu

Purdue University - Krannert School of Management ( email )

1310 Krannert Building
West Lafayette, IN 47907-1310
United States

HOME PAGE: http://https://sites.google.com/site/susanluhome/home

Wenzheng Mao (Contact Author)

Advanced Institute of Business, Tongji University ( email )

Siping Road 1500
Shanghai, Shanghai 200092
China

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