• Corpus ID: 3598730

Labor Market Equilibration : Evidence from Uber

  title={Labor Market Equilibration : Evidence from Uber},
  author={John Joseph Horton},
Using a city-week panel of US ride-sharing markets created by Uber, we estimate the effects of sudden fare changes on market outcomes, focusing on the supply-side. We explore both the short-run dynamics of market adjustment, as well as the eventual long-run equilibrium. We find that the driver hourly earnings rate—essentially the market equilibrium wage—moves immediately in the same direction as a fare change, but that these effects are short-lived. The prevailing wage returns to its pre-change… 
The Ruble Collapse in an Online Marketplace: Some Lessons for Market Designers
The sharp devaluation of the ruble in 2014 increased the real returns to Russians from working in a global online labor marketplace, as con- tracts in this market are dollar-denominated. Russians
Valuing Flexibility: A Model of Discretionary Rest Breaks
As flexible work arrangements become increasingly prevalent in the labor market, more and more workers have discretion over when they take rest breaks—a feature that is likely appealing to many. Yet
Dynamic Pricing Solves the Urban Transportation Disparity – Evidence from NYC On-Demand Ride-Sharing Drivers
In this paper, we empirically investigate the effect of the dynamic pricing system on ride-sharing platform drivers' labor supply. Rather than working-hour and wage-rate relation explored by previous
Frictions in a Competitive, Regulated Market: Evidence from Taxis
This paper presents a dynamic general equilibrium model of a taxi market. The model is estimated using data from New York City yellow cabs. Two salient features by which most taxi markets deviate
Denmark June 19-21 , 2019 Valuing the Welfare Gains of Uber
Ridesharing has become ubiquitous throughout the United States. We exploit quasi-experimental variation in the staggered entry of Uber into different metropolitan areas between 2010 and 2016. Using a
An Empirical Analysis of Market Formation, Pricing, and Revenue Sharing in Ride-Hailing Services
We empirically study the two-sided market for ride-hailing services and the effects of pricing policies and regulation on the value generated by these platforms. We first develop a discrete choice
Understanding Inequalities in Ride-Hailing Services Through Simulations
This paper investigates the effect of algorithm design decisions on wage inequality in ride-hailing platforms by creating a simplified city environment where taxis serve passengers to emulate a working week in a worker’s life and shows that small changes in the system parameters can cause large deviations in the income distributions.
Labor Welfare in On-Demand Service Platforms
We study labor welfare in on-demand service platforms that rely on agents who decide whether and how much to work. Such platforms benefit from having access to a large supply of agents, as the
Essays on Two-sided Platforms: Market Entry Strategy and Dynamic Pricing
This dissertation builds a theoretical framework to study the dynamic entry interactions between two platforms with homogeneous products into city-based markets and finds that the uncertainty in market return will make the platforms’ expansion path and the final outcome less predictable.
Labor Welfare in On-Demand Service Platforms
Problem Definition: An on-demand service platform relies on independent workers (agents) who decide how much time, if any, to devote to the platform. Some labor advocates have argued that an


Labor Supply of New York City Cabdrivers: One Day at a Time
Life-cycle models of labor supply predict a positive relationship between hours supplied and transitory changes in wages. We tested this prediction using three samples of wages and hours of New York
An Analysis of the Labor Market for Uber’s Driver-Partners in the United States
Uber, the ride-sharing company launched in 2010, has grown at an exponential rate. Using both survey and administrative data, the authors provide the first comprehensive analysis of the labor market
Frictions in a Competitive, Regulated Market: Evidence from Taxis
This paper presents a dynamic general equilibrium model of a taxi market. The model is estimated using data from New York City yellow cabs. Two salient features by which most taxi markets deviate
Dynamic Pricing in a Labor Market: Surge Pricing and Flexible Work on the Uber Platform
This talk discusses the practical problems of designing such a dynamic pricing system, how that dynamic pricing coordinates workers who can now earn compensation on a flexible schedule, and more broadly how the "gig" economy is evolving and growing as a form of market organization.
Is Tomorrow Another Day? The Labor Supply of New York City Cabdrivers
  • H. Farber
  • Economics
    Journal of Political Economy
  • 2005
The labor supply of taxi drivers is consistent with the existence of intertemporal substitution. My analysis of the stopping behavior of New York City cabdrivers shows that daily income effects are
Uber vs. Taxi: A Driver's Eye View
Ride-hailing drivers pay a proportion of their fares to the ride-hailing platform operator, a commission-based compensation model used by many internet-mediated service providers. To Uber drivers,
Using Big Data to Estimate Consumer Surplus: The Case of Uber
Estimating consumer surplus is challenging because it requires identification of the entire demand curve. We rely on Uber’s “surge” pricing algorithm and the richness of its individual level data to
Is monopsony the right way to model labor markets? a review of Alan Manning's monopsony in motion
Manning proposes that the ‘traditional’ monopsony model, once regarded as an analytical curiosity, be adopted as a widely‐applicable description of firms' behavior in labor markets. In Manning's
Can Free Entry Be Inefficient? Fixed Commissions and Social Waste in the Real Estate Industry
Real estate agents typically charge a 6 percent commission, regardless of the price of the house sold. As a consequence, the commission fee from selling a house will differ dramatically across cities