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Vyacheslav Fos, Naser Hamdi, Ankit Kalda, Jordan Nickerson 29 March 2020 The growth of the gig economy has renewed debates about how to regulate employers who provide neither health insurance nor social security benefits to their employees. Using a combination of Uber product launch dates and employee-level data on job separations, this column finds that employees who are laid off from their formal occupations but have access to Uber are less likely to rely on unemployment insurance.
The idea that an individual prefers a smooth consumption stream to a lumpy one serves as the foundation of microeconomics. People prefer a stable and predictable path of consumption when transitioning from a period of high income to one of low income. This preference acts as motivation for government policy, such as the broad deployment of unemployment insurance (UI), and serves as a theoretical justification for a consumer's increased reliance on credit during unemployment spells.
57 Pages Posted: 5 Jul 2019 Date Written: July 3, 2019 Abstract This paper shows that the introduction of the "gig-economy" changes the way employees respond to job loss. Using a comprehensive set of Uber product launch dates and employee-level data on job separations, we show that laid-off employees with access to Uber are less likely to apply for UI benefits, rely less on household debt, and experience fewer delinquencies.
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