Saturday, March 28, 2026

Per-Task Minimum Pay for Gig Workers?

From Jeffrey Miron

"In 2024, Seattle tried to raise wages for app-based workers by requiring that they receive a per-task minimum pay.

By comparing earnings for Seattle workers before and after the law went into effect, a recent study finds that while the policy raised per-task wages,

the increases in base pay per task were partially offset by a substantial reduction in average tips, a major component of delivery pay.

Moreover,

drivers experienced more unpaid idle time and longer distances driven between tasks … [And,] the policy led to a reduction in the number of tasks completed by highly attached incumbent drivers, … completely offsetting increased pay per task and leading to zero effect on monthly earnings.

Yet again, over-zealous intervention backfires."

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