In this talk, Catherine Thomas at the London School of Economics will discuss her study on the magnitude and distribution of surplus in an online labor market for the knowledge worker gig economy. She estimates that workers capture one third of the $5.50 in total surplus per hour worked. In counterfactual experiments, traditional employment regulation lowers job posting and hiring rates, reducing surplus for buyers and workers. To understand whether online hiring reduces offline labor demand, she studied how online buyers respond to increases in local offline minimum wages. She found no change in online demand, suggesting online labor markets facilitate new trade in tasks without drawing jobs from traditional employment.
This talk is part of the Digital Seminar, a D^3 Assembly series that is open to faculty, doctoral students, and academic researchers.
Email us at d3ln@hbs.edu for information on attending this seminar.