Three Empirical Investigations of Informal Work and Public Policy in the U.S.

Abstract

In this dissertation, I seek to understand how nontraditional and unstable forms of work interact with traditional work and public policy. In chapter 1, I examine how the gig economy, by disrupting existing industries and providing a uniquely flexible form of work, may influence the labor market outcomes of many more workers than just those directly engaged. To do so, I estimate the indirect effects of gig work on the earnings and employment of workers in the formal sector exploiting the staggered roll-out of Uber across the U.S. I find rising employment following Uber entry translate to Uber’s arrival creating 4.8 million additional jobs across the country, more than twice the number of workers directly engaged in gig work. In chapter 2, I consider how public policy may influence worker and firm decisions to engage in informal work in order to understand the drivers of informality and the relationship between formal policy and informal work. In particular, I examine how the minimum wage, paid sick leave policies, and Medicaid expansion influence participation in informal work. I find evidence that paid sick leave policies and Medicaid expansion are associated with significant increases in participation in informal work. Lastly, in chapter 3, my coauthors and I examine how access to unemployment insurance varies by race among a population of workers disproportionately affected by job loss. We find that although respondents, regardless of race, benefit from UI receipt, eligible Black and Hispanic workers were less likely than White workers to receive unemployment insurance. By examining alternative forms of work and the policies that influence workers in these positions, this dissertation sheds light on how policymakers can reach highly vulnerable or nontraditional workers.