Abstract
Digitalization has significantly changed the way individuals work for a couple of decades. The emergence and expansion of sharing economy enabled by information technology have fundamentally changed the traditional business models. In this paper, we examine the impacts of the sharing economy platforms (specifically, Uber) on labor force participation, unemployment rate, supply, and wage of low-skilled workers. Combining a data set of Uber entry time and several microdata sets, we utilize a difference-in-differences method to investigate whether the above measures before and after Uber entry are significantly different across the metropolitan areas. Our empirical findings reveal that the ridesharing platform Uber increases the labor force participation, and decreases the unemployment rate of people below poverty level. In addition, we also find evidence of a shift in the supply of labors from low-skill jobs in conventional industries to the sharing economy sector. To further access the robustness of the results, we perform additional analyses include the use of alternative measures, the relative time model and the placebo test.
| Original language | English (US) |
|---|---|
| Title of host publication | International Conference on Information Systems 2018, ICIS 2018 |
| Publisher | Association for Information Systems |
| ISBN (Electronic) | 9780996683173 |
| State | Published - Jan 1 2018 |
| Event | 39th International Conference on Information Systems, ICIS 2018 - San Francisco, United States Duration: Dec 13 2018 → Dec 16 2018 |
Publication series
| Name | International Conference on Information Systems 2018, ICIS 2018 |
|---|
Conference
| Conference | 39th International Conference on Information Systems, ICIS 2018 |
|---|---|
| Country | United States |
| City | San Francisco |
| Period | 12/13/18 → 12/16/18 |
Fingerprint
Keywords
- Digital platforms
- Labor market
- Labor participation
- Sharing economy
- Uber
- Unemployment rate
ASJC Scopus subject areas
- Computer Science Applications
- Statistics, Probability and Uncertainty
- Library and Information Sciences
- Applied Mathematics
Cite this
Empowerment or substitution? Entry of Platform-based Sharing Economy on the Local Labor Markets. / Li, Ziru; Hong, Yili; Zhang, Zhongju.
International Conference on Information Systems 2018, ICIS 2018. Association for Information Systems, 2018. (International Conference on Information Systems 2018, ICIS 2018).Research output: Chapter in Book/Report/Conference proceeding › Conference contribution
}
TY - GEN
T1 - Empowerment or substitution? Entry of Platform-based Sharing Economy on the Local Labor Markets
AU - Li, Ziru
AU - Hong, Yili
AU - Zhang, Zhongju
PY - 2018/1/1
Y1 - 2018/1/1
N2 - Digitalization has significantly changed the way individuals work for a couple of decades. The emergence and expansion of sharing economy enabled by information technology have fundamentally changed the traditional business models. In this paper, we examine the impacts of the sharing economy platforms (specifically, Uber) on labor force participation, unemployment rate, supply, and wage of low-skilled workers. Combining a data set of Uber entry time and several microdata sets, we utilize a difference-in-differences method to investigate whether the above measures before and after Uber entry are significantly different across the metropolitan areas. Our empirical findings reveal that the ridesharing platform Uber increases the labor force participation, and decreases the unemployment rate of people below poverty level. In addition, we also find evidence of a shift in the supply of labors from low-skill jobs in conventional industries to the sharing economy sector. To further access the robustness of the results, we perform additional analyses include the use of alternative measures, the relative time model and the placebo test.
AB - Digitalization has significantly changed the way individuals work for a couple of decades. The emergence and expansion of sharing economy enabled by information technology have fundamentally changed the traditional business models. In this paper, we examine the impacts of the sharing economy platforms (specifically, Uber) on labor force participation, unemployment rate, supply, and wage of low-skilled workers. Combining a data set of Uber entry time and several microdata sets, we utilize a difference-in-differences method to investigate whether the above measures before and after Uber entry are significantly different across the metropolitan areas. Our empirical findings reveal that the ridesharing platform Uber increases the labor force participation, and decreases the unemployment rate of people below poverty level. In addition, we also find evidence of a shift in the supply of labors from low-skill jobs in conventional industries to the sharing economy sector. To further access the robustness of the results, we perform additional analyses include the use of alternative measures, the relative time model and the placebo test.
KW - Digital platforms
KW - Labor market
KW - Labor participation
KW - Sharing economy
KW - Uber
KW - Unemployment rate
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M3 - Conference contribution
T3 - International Conference on Information Systems 2018, ICIS 2018
BT - International Conference on Information Systems 2018, ICIS 2018
PB - Association for Information Systems
ER -