The impact of involuntary job displacement on participation in gig work: A causal analysis

Abstract

AbstractWe used rich Canadian administrative data linked to census records to examine the impact of firm closures and involuntary job displacement on entry into gig work. Similar to several recent studies, we identified gig workers as unincorporated self‐employed freelancers, independent consultants and on‐demand workers. We found that individuals displaced from closing firms are about 24% (1.1 p.p.) more likely to be gig workers in the year following the displacement year than the control group. We show that displaced workers remain strongly attached to traditional employment, and those who take up gig work often combine it with earning wages and salaries.