Working Paper: NBER ID: w22667
Authors: Lawrence F. Katz; Alan B. Krueger
Abstract: To monitor trends in alternative work arrangements, we conducted a version of the Contingent Worker Survey as part of the RAND American Life Panel in late 2015. The findings point to a significant rise in the incidence of alternative work arrangements in the U.S. economy from 2005 to 2015. The percentage of workers engaged in alternative work arrangements – defined as temporary help agency workers, on-call workers, contract workers, and independent contractors or freelancers – rose from 10.7 percent in February 2005 to 15.8 percent in late 2015. The percentage of workers hired out through contract companies showed the largest rise, increasing from 1.4 percent in 2005 to 3.1 percent in 2015. Workers who provide services through online intermediaries, such as Uber or Task Rabbit, accounted for 0.5 percent of all workers in 2015. About twice as many workers selling goods or services directly to customers reported finding customers through offline intermediaries than through online intermediaries.
Keywords: alternative work arrangements; gig economy; contract workers; employment trends
JEL Codes: J2; J3; J81
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| increase in alternative work arrangements (J29) | lower earnings per week compared to traditional employment (J31) |
| fewer hours worked (J22) | lower earnings per week in alternative work arrangements (J31) |
| preference for alternative arrangements (D72) | flexibility (J62) |
| preference for traditional employment (J29) | economic necessity (J23) |
| increase in alternative work arrangements (J29) | increase in independent contractors and freelancers (J23) |
| increase in contract work (M55) | increase in alternative work arrangements (J29) |
| increase in alternative work arrangements (J29) | net employment growth in the US economy (O49) |