The number of people holding non-traditional jobs (independent contractors, temporary workers, “gig” workers) continues to grow even during these unprecedented times. Whilst Covid-19 has disrupted labor markets internationally, many people have managed to secure independent work.

In his article IZA World of Labor author Paul Oyer writes that economic downturns, like the one we are living through, put much more pressure on the typical independent worker, leading to less available work and pressure on the rates they can charge. On the other hand, during significant downturns, many traditional workers lose their jobs and, as a result, all their earnings. As many studies have shown, job loss often leads to long-term negative consequences due to substantial periods of unemployment and/or lower wages (and maybe reduced hours) upon finding another job. However, independent workers are less subject to these extreme losses.

While choosing between traditional employment and independent work generally involves risk considerations, the availability of independent work lowers the risk for all workers by providing an “alternative safety net.” For instance, rideshare availability has been shown to increase short-term consumption and earnings when other sources of earnings drop, suggesting that the ability to become a rideshare driver quickly provides insurance to low-skill workers.

Latest articles

• Do labor costs affect companies’ demand for labor? (Deutsch) by Daniel S. Hamermesh

• Statistical profiling of unemployed jobseekers (Deutsch) by Bert van Landeghem, Sam Desiere and Ludo Struyven

• Correspondence testing studies (Deutsch) by Dan-Olof Rooth

• Individual and family labor market impacts of chronic diseases (Deutsch) (Español) by Amanda Gaulke

• The effect of overtime regulations on employment (Deutsch) (Español) by Ronald L. Oaxaca and Galiya Sagyndykova

• Health effects of job insecurity (Deutsch) (Español) by Francis Green

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Upcoming events:

• 4th IZA Labor Statistics Workshop: Measurement of Labor Market Conditions, April 22-24 2021 - Online

• SOLE's 26th Annual Meeting, May 14-15 2021 - Philadelphia, United States

• 17th IZA Annual Migration Meeting, May 28-29 2021 - Online

• 8th IZA Workshop: Environment, Health and Labor Markets, June 17-18 2021 - Online

• 4th IZA/Higher School of Economics Workshop: Thirty Years after the Fall of the Iron Curtain: The Contribution of Labor Market Adjustment to Transition and Convergence, June 30 2021 - Online

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