Does regulation help? The impact of California's AB5 on Gig Workers

Xunyi Wang, Yu Wei Lin, Wencui Han

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

There is a widespread debate over how gig workers should be classified. The passage of California Assembly Bill 5 (AB5) - a landmark legislation that aims to correct the misclassification of gig workers, has significant implications for workers, platforms, regulators, and the economy. In this research, leveraging the passage of AB5 as a shock for a natural experiment, we empirically investigate the impact of AB5 on gig workers in California to provide insights. With the data collected from a leading online labor market that connects clients and gig workers, we applied a Difference in Difference approach, and we found that the monthly earnings of gig workers in California, compared to those in other states, have a significantly higher increase after AB5 was signed into law. This effect stems from both increased daily earnings and increased working days. We discuss the implications for policymakers and platforms.

Original languageEnglish (US)
Title of host publicationProceedings of the 56th Annual Hawaii International Conference on System Sciences, HICSS 2023
EditorsTung X. Bui
PublisherIEEE Computer Society
Pages3557-3566
Number of pages10
ISBN (Electronic)9780998133164
StatePublished - 2023
Externally publishedYes
Event56th Annual Hawaii International Conference on System Sciences, HICSS 2023 - Virtual, Online, United States
Duration: Jan 3 2023Jan 6 2023

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2023-January
ISSN (Print)1530-1605

Conference

Conference56th Annual Hawaii International Conference on System Sciences, HICSS 2023
Country/TerritoryUnited States
CityVirtual, Online
Period1/3/231/6/23

Keywords

  • gig economy
  • online labor market
  • regulation

ASJC Scopus subject areas

  • General Engineering

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