Can You Gig it? An Empirical Examination of the Gig-Economy and Entrepreneurial Activity
dc.contributor.author | Carnahan, Seth | |
dc.contributor | Burtch, Gordon | |
dc.contributor | Greenwood, Brad N. | |
dc.date.accessioned | 2016-03-17T17:36:04Z | |
dc.date.available | 2016-03-17T17:36:04Z | |
dc.date.issued | 2016-03 | |
dc.identifier | 1308 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/117508 | |
dc.description.abstract | We examine how the entry of gig-economy platforms influences local entrepreneurial activity. On one hand, such platforms may reduce entrepreneurial activity by offering stable employment for the un- and under-employed. On the other hand, such platforms may enable entrepreneurial activity by offering work flexibility that allows the entrepreneur to re-deploy resources strategically in order to pursue her nascent venture. To resolve this tension, we exploit a natural experiment, the entry of the ride-sharing platform Uber X and the on-demand delivery platform Postmates into local areas. We examine the effect of each on crowdfunding campaign launches at Kickstarter, the world’s largest reward-based crowdfunding platform. Results indicate a negative and significant effect on crowdfunding campaign launches, and thus local entrepreneurial activity, after entry of Uber X or Postmates. Strikingly, the effect appears to accrue primarily to unfunded and under-funded projects, suggesting that gig-economy platforms predominantly reduce lower quality entrepreneurial activity by offering viable employment for the un- and under-employed. We corroborate our findings with US Census data on self-employment, which indicate similar declines following the entry of Uber X, and with a small scale survey of gig-economy participants. | en_US |
dc.subject | gig economy | en_US |
dc.subject | digital platforms | en_US |
dc.subject | innovation | en_US |
dc.subject | crowdfunding | en_US |
dc.subject | entrepreneurship | en_US |
dc.subject | difference in difference | en_US |
dc.subject | natural experiment | en_US |
dc.subject.classification | Strategy | en_US |
dc.title | Can You Gig it? An Empirical Examination of the Gig-Economy and Entrepreneurial Activity | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Business (General) | en_US |
dc.subject.hlbtoplevel | Business | |
dc.contributor.affiliationum | Ross School of Business | en_US |
dc.contributor.affiliationother | University of Minnesota - Twin Cities - Carlson School of Management | en_US |
dc.contributor.affiliationother | emple University - Fox School of Business | en_US |
dc.contributor.affiliationumcampus | Ann Arbor | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/117508/1/1308_Carnahan.pdf | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/117508/4/1308_Carnahan March2016.pdf | |
dc.description.filedescription | Description of 1308_Carnahan March2016.pdf : March 2016 revision | |
dc.owningcollname | Business, Stephen M. Ross School of - Working Papers Series |
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