Alternative Insurance: Gig Work and Social Insurance Participation

• In Event: Social Insurance

Abstract

Despite the growing prevalence of gig employment, little is known about its causal impact on participation in public assistance programs. The flexibility of gig work may allow households to self-insure against economic shocks, potentially substituting for or complementing public programs such as Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), the Supplemental Nutrition Assistance Program (SNAP), and Medicaid. These dynamics may be particularly important during periods of economic downturn. This study exploits the staggered local penetration of Uber as a natural experiment to assess how expanded access to gig work affects social insurance and welfare participation. Leveraging three data sources—county-level administrative data, the American Community Survey (ACS), and the Health and Retirement Study (HRS) linked to Social Security Administration (SSA) records—and employing a difference-in-differences framework, we find that Uber’s entry into local labor markets significantly reduces participation in SS(D)I and welfare programs. However, these effects are attenuated in areas with higher unemployment, suggesting that the substitutive role of gig work may be limited during broader economic distress.

Authors

• Ngoc Dao, Kean University

• Riley Wilson, Brigham Young University