Saturday, March 03, 2018

The low-paying gig economy

The so-called “gig economy” has rapidly expanded, leading more Americans to derive earnings from on-demand tasks, critics and many economists have argued the burgeoning sector deprives workers – who are often independent contractors rather than employees – of sufficient pay or benefits.
Most Uber and Lyft drivers earn less than minimum wage, according to a new study by the MIT Center for Energy and Environmental Policy Research.
It found that drivers earned a median wage of around $3.37 (£2.44) per hour. Around three-quarters of drivers made less than their state’s minimum wage, the study found, and about 30 per cent were losing money after deducting expenses. “Results indicate that profit from ride-hail driving are very low,” concluded the study, which analysed surveys of over 1,100 drivers and data on the costs of necessities like insurance and fuel.
 The MIT study found that some 80 per cent of drivers worked fewer than 40 hours per week. 

No comments: