Putting Teams into the Gig Economy: A Field Experiment at a Ride-sharing Platform
Speaker: Yan Chen (University of Michigan)
Date: May 6, Wednesday, 2020
Time: 9:00 am - 10:00 am
Venue: Zoom (ID: 826-315-471, you may join the zoom meeting via https://nyu.zoom.us/j/826315471)
Abstract:
The gig economy provides workers with the benefits of autonomy and flexibility, but it does so at the expense of work identity and co-worker bonds. Among the many reasons why gig workers leave their platforms, an unexplored aspect is the organization identity. In this study, we develop a team formation and inter-team contest field experiment at a ride-sharing platform. We assign drivers to teams either randomly or based on homophily in age, hometown location, or productivity. Having these teams compete for cash prizes, we find that: (1) compared to those in the control condition, treated drivers work longer hours and earn 12% higher revenue during the contest, with a larger effect (19%) for teams comprised of drivers who are more communicative and responsive; and (2) drivers in responsive teams continue to earn higher revenue during the two weeks after the contest ends. Together, our results show that platform designers can leverage team identity to increase revenue and worker engagement in a gig economy.
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