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Digital Adoption, Labor Demand, and Worker Earnings: Evidence from Online Delivery

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  • Pascuel Plotkin

Abstract

This paper studies how firm adoption of digital technologies reshapes labor demand and worker earnings. Linking administrative employer-employee records to restaurants and workers from a major delivery platform and using a matched event-study, I show that adopting restaurants substitute in-house labor hours one-for-one with outsourced platform-worker hours. Earnings losses for incumbent workers are modest because displaced workers reallocate to new formal-sector jobs. Exposed non-adopting restaurants are more likely to close, and their workers experience larger losses. I quantify earnings effects across restaurant and platform workers, showing how platform adoption redistributes earnings across workers and creates income outside traditional restaurant employment.

Suggested Citation

  • Pascuel Plotkin, 2026. "Digital Adoption, Labor Demand, and Worker Earnings: Evidence from Online Delivery," RFBerlin Discussion Paper Series 26067, ROCKWOOL Foundation Berlin (RFBerlin).
    • Handle: RePEc:crm:wpaper:26067
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    Keywords

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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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