The “Gig Economy” and Independent Contracting: Evidence from California Tax Data Paper
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About the Paper
Researchers used de-identified data from California personal income tax returns to measure the frequency and nature of independent contracting work in California. The researchers identified independent contractors by the presence of a Schedule C on the tax return. They estimate that 16% of California workers aged 18-64 report some Schedule C income; about two-thirds of these do not have traditional jobs generating W2s and get all of their earnings from Schedule C work. There has been little change in the prevalence of Schedule C work since 2012. In the paper, the researchers explore the characteristics of independent contractors and their distribution across family type, geography, and industry.
Research Questions
- How prevalent is independent contracting?
- Do independent contractors use it as a supplemental or main source of income?
- What are the demographic characteristics of independent contractors?
- How do patterns of independent contracting vary by industry?
Citation
Bernhardt, A., Prohofsky, A., Rothstein, J. (2019). California Policy Lab. The "Gig Economy" and Independent Contracting: Evidence from California Tax Data. Chief Evaluation Office, U.S. Department of Labor.
This study was part of the Department of Labor Scholars Program, and was produced outside of CEO’s standard research development process.