Blurring or Reinforcing Boundaries? Occupational Status and Identity Commitment in the Informal Economy

• In Event: 40226 - Reimagining and Reconstructing Occupational Work and Identities in Changing Environments

Abstract

The rise of the gig economy has fueled debate over the "blurriness thesis"—whether participating in the informal labor market disrupts or reinforces occupational status hierarchies. This study examines these dynamics by mapping occupations within a relational, multidimensional space based on patterns of side job participation and engagement. Using data from the Survey of Informal Work Participation (2015–2020) and applying singular value decomposition (SVD) to occupation-side job matrices, the study reveals that occupational boundaries appear relatively blurred when considering only whether workers participate in side jobs. This suggests some flexibility in navigating across status lines and a potential destigmatization of lower-status work. However, when time spent on side jobs—a proxy for identity commitment—is taken into account, occupational status boundaries remain pronounced. Additive and multiplicative effects (AME) models further reveal that status distance significantly predicts occupational divergence in side job profiles, with stronger effects among higher-status occupations. These findings suggest that high-status workers selectively engage in informal labor in ways that preserve symbolic distinctions, reinforcing existing hierarchies. The study also examines skill-based boundaries—such as education, training, and expertise—revealing how both status and skill distinctions shape the structure of informal labor market participation.

Author

• Elle Zhilan Fang, University of Wisconsin-Madison