← Research PEER-REVIEWED · 2023

The Minimum Wage, Self-Employment, and the Online Gig Economy

Journal of Labor Economics, vol. 41, no. 1, pp. 103–127

Abstract

This paper studies how minimum wage increases affect work arrangements that minimum wage law does not cover, including self-employment and gig work. In the early 2000s, minimum wage increases led to modest declines in traditional self-employment. After the online gig economy emerged in the 2010s, the relationship flipped: a 10 percent increase in the minimum wage increased the number of nonemployer establishments in transportation and warehousing by about 2.7 percent, an effect concentrated in counties with less concentrated labor markets and active ride-hailing platforms.

BibTeX

@article{glasner2023minimumwage_gig,
  title = {The Minimum Wage, Self-Employment, and the Online Gig Economy},
  author = {Glasner, Benjamin},
  journal = {Journal of Labor Economics},
  year = {2023},
  volume = {41},
  number = {1},
  pages = {103--127},
  doi = {10.1086/719690},
  publisher = {The University of Chicago}
}