Who Are Gig Workers, Really?

A clearer picture of microentrepreneurs in the gig economy can lead to better business strategies and government policies

Based on the research of Robert Peterson

Think about a gig worker, and you may picture someone driving you across town or delivering meals or groceries to your door. 

But that image tells only a part of the story, according to new research from Texas McCombs. In surveys totaling 3,020 gig microentrepreneurs, results show they engage in a wide array of activities, come from many different backgrounds, and have varying reasons for doing gig work. 

“If you simply look at the gig economy as a platform-based economy, the Uber drivers and the Lyft drivers, you’re missing a lot of people,” says Robert Peterson, a professor of marketing and the John T. Stuart III Centennial Chair in Business. 

Previous research has focused on the gig economy’s effects on consumers or employment law. A better understanding of the workers themselves, he says, could unlock smarter business strategies and government policies to better promote and regulate its rapid growth.

Painting the Picture

To learn more about gig workers, Peterson and Victoria Crittenden of Babson College conducted two surveys, in 2020 and 2023. The responses offer a detailed description of gig workers’ demographics, products and services, needs, and motivations.

They don’t just drive. Ride-sharing and deliveries made up only 22% of gig work in 2023. Other leading activities included:

• Selling products or services that you make or provide yourself (13%).
• Home repair or other manual skill-based services (13%).
• Personal services, such as pet care, yard maintenance, house cleaning, or caretaking (10%).

They’re diverse. Both surveys found an even split between men and women. Beyond gender, however, gig workers fell heavily into certain demographic groups.

• Three-quarters were 18 to 54 years old. 
• Suburban participants led the way, at nearly 50%.
• Although a third were urban, rural gig workers increased from 14% to 21% between the two surveys.

They’re busy. Increasing numbers are working more than one gig. In 2023, 28% had two gigs, while nearly a third reported three or more. 

They work for money — and love. Needing the income was the primary reason for working gigs, for nearly half of those surveyed. But many do it because they like it. Enjoying the work was the second-most-popular motivation, cited by 19%.

“Some people need the gigs to pay household bills to live,” Peterson says. “But money isn’t all that’s important, especially for older people who are doing gigs. For them, it’s a chance to get out and meet other people, to be doing something useful instead of just sitting at home.” 

COVID caused changes. Between the first and second surveys, the COVID-19 pandemic created new consumer needs, such as home deliveries from restaurants and retailers.

“That had a big impact on the activities we are studying,” Peterson says. “The size of the gig economy has grown, and the nature of the gigs that people do has changed as well.”

In 2020, the largest portion of respondents — 16% — performed accounting, law, or other professional services. Three years later, professional services were only 6%.

They’re earning less. As gig work became more blue-collar, average incomes declined. In the 2023 survey, the share of households making more than $100,000 dropped by half to 17%. Respondents who did not own their homes increased to 49% from 31% in the earlier survey.

The Future of Gig Work

Although the paper looks primarily at gig workers, it also explores their potential impacts on companies and on society at large.

Inside some large companies, for example, employees can bid on short-term gig opportunities in other parts of the business. Pay for performance, rather than for hours on the job, may play a larger part in their incomes, Peterson says.

Gig microentrepreneurs will demand more training, he predicts. Who will provide it and pay for it remains to be seen, but new organizations will probably arise to offer it. 

Changes might be ahead for unions. Several associations, such as Freelancers Union and Gig Workers Rising, already provide networking and collective resources for independent workers, such as group rates for insurance.

For governments, the definition of gig workers has sparked battles at state and federal levels, such as California’s Proposition 22, passed in 2020, which classifies them as independent contractors, not employees.

Still, some lawmakers want to define them as employees to ensure they can accrue benefits such as health insurance. Opponents argue the definition unnecessarily lumps in independent business owners, who would prefer to keep things the way they are.

It may take several years to clearly understand these trends, Peterson says. That opens the door for another kind of microentrepreneur: researchers. He’s planning a third survey to get a better idea of what to expect in the future. 

“The vast array of activities in which gig microentrepreneurs engage clearly shows the need for an on-demand workforce,” Peterson says. “Scholars can provide value in the gig economy by engaging in a variety of research that focuses on it.”

“Microentrepreneurs in the Gig Economy: Who They Are, What They Do, and Why They Do It” is published in the Journal of Research in Marketing and Entrepreneurship.

Story by Sally Parker