Empowerment or substitution? Entry of Platform-based Sharing Economy on the Local Labor Markets

Research output: Chapter in Book/Report/Conference proceedingConference contribution

1 Scopus citations

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 languageEnglish (US)
Title of host publicationInternational Conference on Information Systems 2018, ICIS 2018
PublisherAssociation for Information Systems
ISBN (Electronic)9780996683173
StatePublished - Jan 1 2018
Event39th International Conference on Information Systems, ICIS 2018 - San Francisco, United States
Duration: Dec 13 2018Dec 16 2018

Publication series

NameInternational Conference on Information Systems 2018, ICIS 2018

Conference

Conference39th International Conference on Information Systems, ICIS 2018
CountryUnited States
CitySan Francisco
Period12/13/1812/16/18

    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

Li, Z., Hong, Y., & Zhang, Z. (2018). Empowerment or substitution? Entry of Platform-based Sharing Economy on the Local Labor Markets. In International Conference on Information Systems 2018, ICIS 2018 (International Conference on Information Systems 2018, ICIS 2018). Association for Information Systems.