Measuring the gig economy in Canada using administrative data

Abstract

AbstractA rapidly growing literature on informal work increasingly turns to administrative data to document changes in the size of informal economy and to learn more about the characteristics of freelancers, on‐demand/platform workers and similar types of workers commonly referred to as “gig workers.” These studies have established a conceptual link between the work arrangements of gig workers and how these are reported in tax data. We contribute to this literature by introducing a method of identifying gig workers specific to the way work arrangements are reported in the Canadian tax system and estimating the size of the gig economy in Canada using administrative data. Based on our definition, the share of gig workers among all workers rose from 5.5% in 2005 to 8.2% in 2016. Some of this increase coincided with the introduction and proliferation of online platforms. Our analysis highlights gender differences in the trends and characteristics of gig workers. By linking administrative data to 2016 census microdata, we are also able to examine educational and occupational differences in the prevalence of gig workers.