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The Independent Contractor Workforce: New Evidence on Its Size and Composition and Ways to Improve Its Measurement in Household Surveys

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Listed:
  • Katharine G. Abraham
  • Brad Hershbein
  • Susan N. Houseman
  • Beth C. Truesdale

Abstract

Good data on the size and composition of the independent contractor workforce are elusive. The authors carried out a series of focus groups to learn how independent contractors speak about their work. Based on those findings, they designed and fielded a telephone survey to elicit more accurate and complete information on independent contractors. Roughly 1 in 10 workers who initially reported working for an employer on one or more jobs (and thus were coded as employees) were independent contractors on at least one of those jobs. Incorporating these miscoded workers into estimates of main job work arrangements nearly doubles the share who are independent contractors to approximately 15% of all workers. Taking these workers into account substantively changes the demographic profile of the independent contractor workforce. Probing in household surveys to clarify a worker’s employment arrangement and identify all low-hours work is critical for accurately measuring independent contractor work.

Suggested Citation

  • Katharine G. Abraham & Brad Hershbein & Susan N. Houseman & Beth C. Truesdale, 2024. "The Independent Contractor Workforce: New Evidence on Its Size and Composition and Ways to Improve Its Measurement in Household Surveys," ILR Review, Cornell University, ILR School, vol. 77(3), pages 336-365, May.
    • Handle: RePEc:sae:ilrrev:v:77:y:2024:i:3:p:336-365
    DOI: 10.1177/00197939241226945
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    References listed on IDEAS

    as
    1. Abraham, Katharine G. & Hershbein, Brad & Houseman, Susan N., 2021. "Contract work at older ages," Journal of Pension Economics and Finance, Cambridge University Press, vol. 20(3), pages 426-447, July.
    2. Abraham Katharine G. & Amaya Ashley, 2019. "Probing for Informal Work Activity," Journal of Official Statistics, Sciendo, vol. 35(3), pages 487-508, September.
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    4. Marysol McGee & Barbara J. Robles, 2016. "Exploring Online and Offline Informal Work : Findings from the Enterprising and Informal Work Activities (EIWA) Survey," Finance and Economics Discussion Series 2016-089, Board of Governors of the Federal Reserve System (U.S.).
    5. Katharine G. Abraham & John C. Haltiwanger & Claire Hou & Kristin Sandusky & James R. Spletzer, 2021. "Reconciling Survey and Administrative Measures of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 39(4), pages 825-860.
    6. Lawrence F. Katz & Alan B. Krueger, 2019. "Understanding Trends in Alternative Work Arrangements in the United States," NBER Working Papers 25425, National Bureau of Economic Research, Inc.
    7. Bracha, Anat & Burke, Mary A., 2021. "How Big is the Gig? The Extensive Margin, The Intensive Margin, and The Hidden Margin," Labour Economics, Elsevier, vol. 69(C).
    8. Katharine G. Abraham & Susan N. Houseman, 2019. "Making Ends Meet: The Role of Informal Work in Supplementing Americans’ Income," Upjohn Working Papers 19-315, W.E. Upjohn Institute for Employment Research.
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    Cited by:

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    2. Jason B. Cook & Chloe N. East, 2023. "The Effect of Means-Tested Transfers on Work: Evidence from Quasi-Randomly Assigned SNAP Caseworkers," NBER Working Papers 31307, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    independent contractor; self-employment; work arrangements; survey design; miscoding; secondary work;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • M55 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Contracting Devices

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