The rise of gig work has prompted many examinations of its impact on the financial, mental, and physical health of those involved. The latest such effort comes from the University of Texas Health Science Center at Houston, with their research suggesting that gig work can have a negative impact on the health and wellbeing of American workers.

The authors used data from the 2008-2019 IPUMS Medical Expenditure Panel, and found that the insecure income that is common in gig work can often lead to poor health outcomes among gig workers. This includes higher reimbursed healthcare costs, a generally sicker workforce, and overall higher costs to the consumer.

Insecure income

The analysis revealed that insecure income was associated with a 50% rise in poor overall health, while psychological distress was also much higher than among salaried earners.

This trend was limited to an extent when socioeconomic factors were taken into account, but the higher health risks remained an issue, and especially so for women and those with lower levels of education.

“The longer-term economic burden will ultimately be passed onto the U.S. consumer as we see increases in worker shortages, increases in prices from gig companies, and increases in unreimbursed health care utilization,” the researchers explain. “It is reasonable to project that the U.S. taxpayer will pay more for uninsured chronic morbidity care of uninsured U.S. workers who are paid an insecure income.”

The report also found that Black and Hispanic workers were also vulnerable due to their higher likelihood of having an insecure income. The findings come amidst ongoing battles between gig companies and legislators over the classification of gig workers as independent contractors rather than employees. The findings underline that these decisions can have real and significant consequences to the health and wellbeing of those involved.