Who Benefits from Online Gig Economy Platforms?
Christopher T. Stanton, Catherine Thomas
American Economic Review · 2025 · Volume 115 · Issue 6
Abstract
Online labor platforms for short-term remote work have many more job seekers than available jobs. Despite their relative abundance, workers capture a substantial share of the surplus from transactions. We draw this conclusion from demand estimates that imply workers' wages include significant markups over costs and a survey that validates our surplus estimates. Workers retain a significant share of the surplus because demand-side search frictions and worker differentiation reduce direct competition. Finally, we show that applying traditional employment regulations to online gig economy platforms would lower job posting and hiring rates, reducing aggregate surplus for all market participants, including workers.
Keywords
Survey Methods, Sampling Methods, Foreign Exchange, Time Allocation and Labor Supply, Labor Demand, Wage Level and Structure, Wage Differentials, Unemployment: Models, Duration, Incidence, and Job Search, Personnel Economics: Firm Employment Decisions, Promotions
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