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

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  • Benjamin Glasner

Abstract

This paper estimates the effect of minimum wage increases on work that is not covered by minimum wage laws. I find that minimum wage increases in the early 2000s resulted in small reductions in engagement in traditional self-employment. Following the development of the online gig economy in the 2010s, a 10% increase in the minimum wage increased the number of nonemployer establishments classified as transportation and warehousing services by approximately 2.7%. The counties most likely to exhibit a positive relationship between the minimum wage and participation in uncovered work are those with low labor market concentration and active Uber marketplaces.

Suggested Citation

  • Benjamin Glasner, 2023. "The Minimum Wage, Self-Employment, and the Online Gig Economy," Journal of Labor Economics, University of Chicago Press, vol. 41(1), pages 103-127.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/719690
    DOI: 10.1086/719690
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    Cited by:

    1. Bernardo Fanfani & Filippo Passerini, 2024. "Do Alternative Work Arrangements Substitute Standard Employment? Evidence from Worker-Level Data," Working Papers wp1190, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. Ahn, Taehyun, 2024. "Minimum wage and self-employed business owners: Evidence from South Korea," Labour Economics, Elsevier, vol. 88(C).
    3. Fanfani, Bernardo & Passerini, Filippo, 2024. "Are Alternative Work Arrangements a Substitute for Standard Employment? Evidence from Worker-Level Data," IZA Discussion Papers 17399, Institute of Labor Economics (IZA).

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