We use cookies to provide you with the best possible website experience. This includes cookies that are necessary for the operation of the site, as well as cookies used for anonymous statistics, comfort settings, or displaying personalized content. You can decide which categories you want to allow. Please note that depending on your settings, some features of the website may not be available.

Cookie settings

These necessary cookies are required to enable the core functionality of the website. Opting out of these cookies is not possible.

cb-enable
This cookie stores the user's cookie consent status for the current domain. Expiry: 1 year.
laravel_session
Stores the session ID to recognize the user when the page reloads and to restore their login session. Expiry: 2 hours.
XSRF-TOKEN
Provides CSRF protection for forms. Expiry: 2 hours.
IZA Discussion Paper No. 15775
December 2022
Piecework and Job Search in the Platform Economy
Michele Cantarella, Chiara Strozzi

The massive growth of jobs in the platform economy has reignited a long-standing debate on the wage elasticity of labour supply for the self-employed. Overwhelming empirical evidence seems to suggest that workers in the platform economy will work more hours than they wish to, for a lower wage, suggesting a backward-bending labour supply curve. Is this puzzling outcome explained by target earning behaviour or rather by the uncertainty arising from task search? In this paper, we test these hypotheses making use of new data on on-location and online platform workers earning on a piece-rate basis in the EU, exploiting search shocks in a difference-in-differences strategy to reassess the wage elasticity of labour supply. We find that uncertainty in search plays a central role in inflating hours of work, revealing a positive and inelastic wage elasticity for all platform workers. On average, a percentage increase in job search leads to a net loss in income, suggesting that piecework might be an endemic source of demand surplus for monopsonistic markets.

Kommunikation
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Netzwerkkoordination
Christina Gathmann
christina.gathmann@liser.lu

Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

Über das IZA@LISER Network
Contact
IZA Network (Current Site Operator):

Luxembourg Institute of Socio-Economic Research (LISER)
11, Porte des Sciences
Maison des Sciences Humaines
L-4366 Esch-sur-Alzette / Belval, Luxembourg

IZA Institute (In Liquidation):

Forschungsinstitut zur Zukunft der Arbeit GmbH i. L.
Schaumburg-Lippe-Str. 5-9, 53113 Bonn. Germany
Phone: +49 228 3894-0 | Fax: +49 228 3894-510
E-Mail: info@iza.org | Web: www.iza.org
Represented by: Martin T. Clemens (Liquidator)