Are Gig Jobs Stepping Stones or Dead Ends? Evidence from a Conjoint Analysis

• In Event: Equity and employment: hiring, retention, wages, and workplace conditions

Abstract

Does gig economy experience help workers enter the traditional labor market? With the rise of digital capitalism, the labor market is rapidly changing, marked by a growing number of non-standard workers such as gig workers. Unlike traditional jobs, non-standard jobs often feature unclear employment boundaries and high insecurity, largely due to limited access to social security programs (Manyika et al., 2016; Thelen, 2018). Notably, most social insurance programs in the US are built around a standard employment model that relies on employer-sponsored health insurance and retirement benefits. This design increases the insecurity and uncertainty faced by non-standard workers.

Due to these insecurities, gig workers often view their jobs as “bridges” to more stable employment rather than long-term careers (Manyika et al., 2016). Gig jobs can also function as a temporary solution to income gaps during unemployment (Kecht & Marcolin, 2022). For example, Uber drivers often see gig work as a useful “bridge” until they find jobs that are better suited to their skills and interests (Hall & Krueger, 2018).

Despite their hopes to transition into more secure, traditional jobs, it remains unclear whether gig jobs truly serve as stepping stones to traditional employment or represent dead ends. This project addresses this question by conducting a conjoint experiment that randomly assigns hypothetical job applicants different characteristics, including (a) work experience type, (b) immigrant status, (c) skill level, and (d) gender. The analysis investigates how employers in the traditional labor market evaluate gig work experience.

Preliminary expectations suggest that gig workers face labor market discrimination when applying for more stable jobs, with stronger negative effects for low-skilled immigrant workers. This implies that, despite their aspirations for secure employment, gig work experience may inadvertently trap workers in non-standard jobs with limited access to social protection programs. Because social insurance systems are designed for traditional employment, these institutional barriers further disadvantage gig workers—creating a “double barrier” that limits both labor market mobility and access to social protections.

Author

• Juhyun Bae, University of Texas - Rio Grande Valley
  Presenting Author