Give Gig Workers A Real Break

Source: Hoover Institution
by David R Henderson

“‘Gig workers get a break from Biden Labor Department.’ That’s the title of an October 11 article by Emily Peck of Axios Markets. What break is Peck referring to? The Biden administration’s Labor Department proposed a regulation to get many ‘gig workers’ classified as employees. Peck refers to this as a ‘pro-labor turn.’ Interestingly, Peck doesn’t explain why having the government classify gig workers as employees without taking account of gig workers’ wishes is good for those workers. Peck takes as given that they would want to be employees. But is that true? When economists observe people doing activity X when activity Y is an option, we tend to conclude that those people prefer X to Y.” (11/17/22)