Full Citation

Title: Can You Gig It? An Empirical Examination of the Gig-Economy and Entrepreneurial Activity

Citation Type: Conference Paper

Publication Year: 2016

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Abstract: We examine how the entry of gig-economy platforms influences local entrepreneurial activity. On the one hand, such platforms may reduce entrepreneurial activity by offering stable employment for the un- and under-employed. On the other hand, such platforms may enable entrepreneurial activity by offering work flexibility that allows the entrepreneur to re-deploy resources strategically in order to pursue the nascent venture. To resolve this tension, we examine the entry of the ride-sharing platform Uber X into local areas. We use two measures of entrepreneurial activity: crowdfunding campaign launches at Kickstarter, the world’s largest reward-based crowdfunding platform, and levels of self-employment from the Current Population survey. Results indicate a negative and significant relationship between platform entry and both measures of entrepreneurial activity. Importantly, the effect manifests primarily amongst unsuccessful Kickstarter campaigns and unincorporated entrepreneurial ventures, suggesting that gig-economy platforms predominantly reduce lower quality entrepreneurial activity, seemingly by offering viable employment for the un- and under-employed. These relationships are corroborated with a first-hand survey conducted with gig-economy service providers.

Url: https://experts.umn.edu/en/publications/can-you-gig-it-an-empirical-examination-of-the-gig-economy-and-en

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Authors: Burtch, Gordon; Carnahan, Seth; Greenwood, Brad, N

Conference Name: 76th Annual Meeting of the Academy of Management, AOM 2016

Publisher Location: Anaheim, United States

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Other

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