Does Savings Affect Participation in the Gig Economy? Evidence from a Tax Refund Field Experiment

Author

Sam Bufe, Washington University in St. Louis
Stephen P. Roll, Washington University in St. Louis
Olga Kondratjeva, Washington University in St. Louis
Bradley Hardy, Washington University in St. Louis
Michal Grinstein-Weiss, Washington University in St. Louis

Publication Date

2020

Publisher

Social Policy Institute at Washington University in St. Louis

Summary

This paper investigates how saving the federal tax refund affects gig economy participation for low-income online tax filers in the six months following tax filing. Using longitudinal survey and administrative data, we leverage random assignment in a unique refund savings experiment as an instrument for refund savings. We find significant heterogeneity in estimated effects that are consistent with life cycle models on consumption and savings. Specifically, refund savings reduced the likelihood of low-income students working in the gig economy, but increased the likelihood of more economically vulnerable households working in the gig economy. (JEL J22, D14, G51).

Document Type

Report or White Paper

Notes

Paper removed at the request of the author

DOI:

https://doi.org/10.7936/yann-7844

Project

Refund to Savings (R2S)

Recommended Citation

Bufe, Sam; Roll, Stephen P.; Kondratjeva, Olga; Hardy, Bradley; and Grinstein-Weiss, Michal, "Does Savings Affect Participation in the Gig Economy? Evidence from a Tax Refund Field Experiment" (2020). Social Policy Institute Research. 16.
https://openscholarship.wustl.edu/spi_research/16