> If you create a job market segment where employees are being underpaid, but they're accepting it because there aren't better options for them, the overall job market can suffer.
I think this statement is trivially true. The question becomes:
1) Are these people being underpaid, and would making them employees increase their pay?
2) Are there no better options available?
I am not convinced of either of these points. Uber's pay seems to be competitive [1]. We also have historically low unemployment. It is easier to get a job now than anytime in the past ten years[2], and much easier than the historical average. The fact that this is the case and people are still flocking to be gig workers should tell you that people want to be Uber drivers, they are not forced into it.
> Are these people being underpaid, and would making them employees increase their pay?
Maybe, maybe not. It would give them access to healthcare and other things a lot of people take for granted.
> The fact that this is the case and people are still flocking to be gig workers should tell you that people want to be Uber drivers, they are not forced into it.
Or, maybe it's an indication that there aren't other jobs available for the people flocking. The want is to make money, not to drive for Uber.
> It would give them access to healthcare and other things a lot of people take for granted.
This is something I'm not clear on. Couldn't Uber still hire the drivers and limit them to 39 hours a week? Wage workers don't get benefits like health insurance. Even being a salaried worker does not guarantee health insurance, etc.
Am I missing something? Maybe California's labor laws are different than my states.
I think this statement is trivially true. The question becomes:
1) Are these people being underpaid, and would making them employees increase their pay?
2) Are there no better options available?
I am not convinced of either of these points. Uber's pay seems to be competitive [1]. We also have historically low unemployment. It is easier to get a job now than anytime in the past ten years[2], and much easier than the historical average. The fact that this is the case and people are still flocking to be gig workers should tell you that people want to be Uber drivers, they are not forced into it.
[1] https://www.forbes.com/sites/niallmccarthy/2016/11/28/fare-d...
[2] https://tradingeconomics.com/united-states/unemployment-rate