American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Who Benefits from Online Gig Economy Platforms?
American Economic Review
(pp. 1857–95)
Abstract
Online labor platforms for short-term remote work have many more job seekers than available jobs. Despite their relative abundance, workers capture a substantial share of the surplus from transactions. We draw this conclusion from demand estimates that imply workers' wages include significant markups over costs and a survey that validates our surplus estimates. Workers retain a significant share of the surplus because demand-side search frictions and worker differentiation reduce direct competition. Finally, we show that applying traditional employment regulations to online gig economy platforms would lower job posting and hiring rates, reducing aggregate surplus for all market participants, including workers.Citation
Stanton, Christopher T., and Catherine Thomas. 2025. "Who Benefits from Online Gig Economy Platforms?" American Economic Review 115 (6): 1857–95. DOI: 10.1257/aer.20221189Additional Materials
JEL Classification
- C83 Survey Methods; Sampling Methods
- F31 Foreign Exchange
- J22 Time Allocation and Labor Supply
- J23 Labor Demand
- J31 Wage Level and Structure; Wage Differentials
- J64 Unemployment: Models, Duration, Incidence, and Job Search
- M51 Personnel Economics: Firm Employment Decisions; Promotions