TY  - RPRT
        AU  - Dolado, Juan J.
AU  - Jáñez, Álvaro
AU  - Wellschmied, Felix
        TI  - Riders on the Storm
        PY  - 2025/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17740
        UR  - https://www.iza.org/index.php/publications/dp17740
        AB  - Online food delivery platforms typically operate through a controversial business model that relies on subcontracting self-employed workers, known as riders. We quantify the labor-market effects of the Spanish Riders' Law in 2021 that established the presumption of dependent employment for riders using a search and matching model. Riders with heterogeneous preferences for leisure trade off work flexibility and easier employability as self-employed against enjoying higher wages as employees. Our main finding is that the reform led to a higher share of employees but failed to fully absorb the large flows of workers transiting out of self-employment and decreased riders' wages leading to welfare losses. However, complementing the reform with a payroll tax cut for platforms hiring employees preserves employment levels and increases riders' welfare.
        KW  - riders
KW  - food delivery platforms
KW  - self-employed
KW  - employees
        ER  -