Delivery Work Disparities: A Study of Wage Outcomes by Demographic Factors

• In Event: 20881 - Section on Labor and Labor Movements Roundtables
  In Refereed Roundtable (60 minute): Table 1: Documenting Labor Inequalities

Abstract

This study investigates wage disparities among delivery drivers, uncovering entrenched demographic-based inequities. Using data from the 2020–2023 Annual Social and Economic Supplement of the Current Population Survey, it reveals that delivery drivers face income gaps based on their gender and race, even after adjusting for regions and hours worked. The analysis finds that while education plays a limited role in income determination within this sector, demographic factors such as race and gender are potent indicators of earnings. Horizontally, the data suggest that delivery drivers face significantly more work income volatility and lower income from work compared to similar occupations; Vertically, delivery drivers have the highest volatility based on demographic factors within the industry. Employing regression analysis and propensity score matching, this study shows that the delivery sector is marked by historical patterns of labor segmentation and demographic exclusion, where social distinctions deeply influence individual income. Rather than a mere reflection of personal merit or professional qualifications, wages in this industry seem more a product of persistent social hierarchies, which manifest significantly in the delivery workforce. These findings challenge existing notions of occupational equity, advocating for policies that not only bridge these gaps but also confront the mechanisms that perpetuate them, aiming ultimately to pave the way for fairer labor practices and income equity.

Author

• Rui Gao, University of California-Irvine