The “Gig Economy” and Independent Contracting: Evidence from California Tax Data Paper

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Release Date: April 01, 2019

The “Gig Economy” and Independent Contracting: Evidence from California Tax Data Paper

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About the Paper

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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.

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This study was part of the Department of Labor Scholars Program, and was produced outside of CEO’s standard research development process.