The study's authors used a model to simulate the effects of reclassification on the gig economy. They found that reclassification would increase wages for gig workers by an average of 16%, and would also lead to increased benefits such as health insurance and paid time off. For platforms, reclassification would reduce costs by an average of 12%.
The study's authors argue that reclassification is a win-win solution for both workers and platforms. They conclude that "reclassification would improve the well-being of gig workers without sacrificing the cost-effectiveness of the gig economy."
The study's findings are consistent with other research on the gig economy. A study from the National Bureau of Economic Research found that gig workers are more likely to be poor and uninsured than traditional employees. Another study from the University of California, Los Angeles found that gig workers are more likely to experience wage theft and other forms of exploitation.
The study's findings are also consistent with the growing movement to reclassify gig workers as employees. In recent years, several states have passed laws that require gig workers to be classified as employees. The Biden administration has also expressed support for reclassification.
The study's findings provide further evidence that reclassification is a necessary step to protect gig workers from exploitation and to ensure that they are able to share in the benefits of the gig economy.
