Journal article

Drivers of disruption: estimating the Uber effect

15 Nov 2018
Description

A frequent belief is that the rise of the “sharing economy” has led to the displacement of workers in a wide range of traditional jobs. This paper examines the impacts of the flagship of the sharing economy—Uber—on workers employed in conventional taxi services. Our analysis exploits the staggered rollout of Uber across U.S. cities, showing that employment of payroll taxi services if anything expanded after the introduction of the Uber platform, accompanied by a marked relative shift towards self-employment. While we find no evidence of adverse employment impacts, our estimates show that hourly earnings declined for wage-employed drivers, which were partly offset by increases in income among self-employed drivers. A triple-difference design that compares earnings and employment changes for taxi drivers relative to bus, delivery, tractor, and truck drivers that were unaffected by the arrival of Uber provides further supporting evidence that while Uber has had no negative employment impacts it has reduced the earnings potential of incumbent drivers in point-to-point transportation services.

Publication Details
Identifiers: 
doi: 
10.1016/j.euroecorev.2018.05.006
Volume: 
110
Pagination: 
197-210
Access Rights Type: 
Paid subscription required
Language: 
English
License Type: 
All Rights Reserved
Peer Reviewed: 
Yes
Published year only: 
2018
10
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