A0245
Title: Estimating the value of psychic income for artists and other workers
Authors: Joanna Woronkowicz - Indiana University (United States) [presenting]
Douglas Noonan - Indiana University (United States)
Abstract: The notion of the gig worker in the modern economy, where working arrangements are temporary or project-based, has brought up a slew of policy questions related to whether the nonpecuniary value these workers might receive from engaging in gig work makes up the difference between what they don't receive in terms of wages and other pecuniary benefits. Employment data is used on workers in the United States from the 2018-2022 American Community Survey collected by the U.S. Census Bureau to estimate the value of psychic income for artists and other workers, including gig workers. Since accounting for the implicit prices of job characteristics across occupations can be essential to fully understand the compensation and selective pressures associated with the workforce, a selection model is used to separate the selective pressures from observable and unobservable worker characteristics. The results show that, among artist workers, the average estimated wage differential is not consistently positive. By contrast, primary school teachers experience a consistently positive amount of psychic income. In light of the nature of the sample, identification strategy, and market equilibrium conditions, the implications of these results are discussed in relation to gig-style work, especially those relevant to creative occupations.
