Independent Contracting, Self-Employment, and Gig Work: Evidence from California Tax Data
We use de-identified data from California personal income tax returns to measure the frequency and nature of independent contracting and self-employment work in California. We identify this work by the presence of a Schedule C on the tax return and/or the receipt of a Form 1099 information return. We estimate that 14.4% of California workers aged 18-64 in tax year 2016 had some independent contracting or self-employment income; about half of these workers also had earnings from traditional W-2 jobs during the year. We find that only a small share (1.4%) of workers had earnings from online labor platforms (often called gig work). Workers with low earnings were significantly more likely to earn independent contracting or self-employment income and to rely primarily or exclusively on that income. We explore the characteristics of workers engaging in independent contracting and self-employment and their distribution across family type, geography, and industry.
Published Versions
Annette Bernhardt & Christopher Campos & Allen Prohofsky & Aparna Ramesh & Jesse Rothstein, 2023. "Independent Contracting, Self-Employment, and Gig Work: Evidence from California Tax Data," ILR Review, Cornell University, ILR School, vol. 76(2), pages 471-471, March. citation courtesy of 
Annette Bernhardt & Christopher Campos & Allen Prohofsky & Aparna Ramesh & Jesse Rothstein, 2023. "Independent Contracting, Self-Employment, and Gig Work: Evidence from California Tax Data," ILR Review, Cornell University, ILR School, vol. 76(2), pages 357-386, March. citation courtesy of
Related
Programs
Working Groups
More from NBER
In addition to working papers, the NBER disseminates affiliates’ latest findings through a range of free periodicals — the NBER Reporter, the NBER Digest, the Bulletin on Retirement and Disability, the Bulletin on Health, and the Bulletin on Entrepreneurship — as well as online conference reports, video lectures, and interviews.
