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Impact of legislation on gig workers: evidence from Chile

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  • Valenzuela-Rivera, Luis

Abstract

Based on representative samples of gig workers from Chile (drivers and riders working through applications like Uber and Rappi), this paper explores the subjective and objective impact of two Chilean laws regarding the gig economy. The demographic and employment characteristics of these workers, including job satisfaction and motivation, are also analyzed. Overall, laws have a muted to negative effect on workers. For the first law (which formalizes the status of gig workers as workers), those who report a negative impact associate it with less flexibility regarding working hours, in addition to the now compulsory income taxes. For the second law (which increases the requirements to work as driver), more than half report that they will stop working. Partial compliance with the law also stands out, which is particularly clear in the low and stable rate of income reporting to the State by workers.

Suggested Citation

  • Valenzuela-Rivera, Luis, 2024. "Impact of legislation on gig workers: evidence from Chile," MPRA Paper 124894, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:124894
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    File URL: https://mpra.ub.uni-muenchen.de/124942/1/MPRA_paper_124894.pdf
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    References listed on IDEAS

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    1. Colin Camerer & Linda Babcock & George Loewenstein & Richard Thaler, 1997. "Labor Supply of New York City Cabdrivers: One Day at a Time," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 407-441.
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    Keywords

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    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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