The Evolution and Future of Work Speaker Series has concluded for the semester. The series will resume in the fall.
Multi-Layered Labor Contracting, Internal Platforms, and Price Setting Process for Non-Standard Work
This paper examines an important, but little understood phenomenon that dictates the recruitment of nonstandard workers through what I call "platform-induced multi-layered labor contracting" arrangements. These arrangements occur when a lead company outsources their nonstandard work-specific HR function to an intermediating organization that then contracts with a vendor-managing technology platform to receive bids from a large pool of competing suppliers sourcing nonstandard workers.
In this paper, I examine the link between multi-layered labor contracting, internal platforms, and subsequent economic outcomes for the lead firms, suppliers, and workers. Using unique proprietary data from about a million nonstandard job seeker records at 49 Fortune 500 firms, I first show that the outsourcing of nonstandard worker recruitment is associated with higher returns to the firms and lower returns to the workers. I then find that the arrangements involving internal platforms are by design relationship-limiting — the results reveal that when there are pre-existing firm-worker or firm-supplier relationships outside of the platform, the loss from engaging in platform-induced multi-layered labor contracting is significantly reduced. Findings from this paper shed a new light in understanding the recruitment practices that dictate the price-setting processes for nonstandard work.
Keys to a successful NSF proposal
New Work or Changes in Reporting? A Framework for Measuring Self-Employment Trends in Administrative Data
Increasingly, researchers in the United States look to measures of self-employment from administrative tax data, which show larger growth in self-employment than mainstream surveys of the labor market. This divergence may reflect changes in real activity not well-captured by traditional surveys, but may also reflect changes in workers’ propensity to report their self-employment earnings to tax authorities, potentially in response to incentives created by the tax code. Consistent with the latter explanation, we find the extensive-margin growth in reported self-employment in administrative tax records is concentrated among low-income households with children with incentives to report self-employment earnings due to tax credit phase-ins. We employ a regression discontinuity design which compares households whose children are born at the end of the tax year—and are eligible for these incentives—with households whose children are born just a few days later and face no change in reporting incentives. We find a sizable increase in reported self-employment among incentivized individuals for which the only plausible interpretation is strategic reporting. These effects have grown over time, with increases being concentrated in regions where other proxies for knowledge of tax credits have grown as well. Incorporating these insights, we present a framework to adjust trends in U.S. self-employment tax filings for changes in reporting behaviors to extract true underlying trends in the composition of the workforce. Considering counterfactual scenarios, we find that between 28 and 59 percent of the growth and all countercyclicality in self-employment rates can be attributed to pure reporting changes.
Non-College Occupations, Workplace Routinization, and the Gender Gap in College Enrollment
Women used to lag behind men in college enrollment but now exceed them. This paper focuses on the role of non-college job prospects in explaining these trends. We first document that routine-biased technical change disproportionately displaced non-college occupations held by women. We next instrument for routinization to show that declining non-college job prospects for women increased female enrollment. Two stage least squares results show that a one percentage point rise in routinization increases female college enrollment by 0.6 percentage points, while the effect for male enrollment is not systematically significant. We next embed this instrumental variation into a dynamic model that links education and occupation choices. The model finds that routinization decreased returns to non-college occupations for women, leading them to shift to cognitive work and increasing their college premium. In contrast, non-college occupations for men were less susceptible to routinization. Altogether, our model estimates that workplace routinization accounted for 63% of the growth in female enrollment and 23% of the change in male enrollment between 1980 to 2000.
From Labor-Displacing to Labor-Reinstating: Exploring Production Workers’ Experience with Collaborative Robots
Automation technologies have historically been an important site of struggle between laborers and capitalists. These technologies can reduce employment and wages of human workers, and lead to unrest — but they can also create new occupations. Historically, these two effects have counterbalanced each other; however, more recently, economists have expressed concern about automation technologies’ negative impacts on wages and employment. In this talk, I will present how newly-adopted collaborative robots in manufacturing plants generated struggle among various stakeholders and how labor-reinstating technologies can be a promising direction for collaborative robots and other technologies in the future workplace.