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The impact of involuntary job displacement on participation in gig work: A causal analysis

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  • Sung‐Hee Jeon
  • Yuri Ostrovsky

Abstract

We used rich Canadian administrative data linked to census records to examine the impact of firm closures and involuntary job displacement on entry into gig work. Similar to several recent studies, we identified gig workers as unincorporated self‐employed freelancers, independent consultants and on‐demand workers. We found that individuals displaced from closing firms are about 24% (1.1 p.p.) more likely to be gig workers in the year following the displacement year than the control group. We show that displaced workers remain strongly attached to traditional employment, and those who take up gig work often combine it with earning wages and salaries.

Suggested Citation

  • Sung‐Hee Jeon & Yuri Ostrovsky, 2025. "The impact of involuntary job displacement on participation in gig work: A causal analysis," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 64(2), pages 246-267, April.
    • Handle: RePEc:bla:indres:v:64:y:2025:i:2:p:246-267
    DOI: 10.1111/irel.12372
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    References listed on IDEAS

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    Cited by:

    1. Jeon, Sung-Hee & Ostrovsky, Yuri, 2025. "Known unknowns in closing firms and the earnings losses of laid off workers and early leavers," Journal of Economic Behavior & Organization, Elsevier, vol. 239(C).

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