The Independent Contractor Workforce: New Evidence on Its Size and Composition and Ways to Improve Its Measurement in Household Surveys

Abstract

Good data on the size and composition of the independent contractor workforce are elusive. The authors carried out a series of focus groups to learn how independent contractors speak about their work. Based on those findings, they designed and fielded a telephone survey to elicit more accurate and complete information on independent contractors. Roughly 1 in 10 workers who initially reported working for an employer on one or more jobs (and thus were coded as employees) were independent contractors on at least one of those jobs. Incorporating these miscoded workers into estimates of main job work arrangements nearly doubles the share who are independent contractors to approximately 15% of all workers. Taking these workers into account substantively changes the demographic profile of the independent contractor workforce. Probing in household surveys to clarify a worker’s employment arrangement and identify all low-hours work is critical for accurately measuring independent contractor work.