While gig work affords people a high degree of flexibility, this flexibility is not without consequences. Research from Emlyon Business School highlights the health impact of the income volatility associated with gig work.

Across three studies involving several industries in the United States, the researchers found that workers who experienced higher levels of pay volatility suffered from a range of physical health issues, including headaches, backpain, and poor sleep quality.

“Pay volatility seems to predict worse health outcomes across a wide range of incomes,” the researchers explain. “Not only was pay volatility related to worse health in lower-paid tipped jobs or among freelancers in the gig economy but for higher-paid professionals working in finance, sales and marketing where commissions and performance bonuses are common.”

Health impact

For instance, in one study where workers were relying heavily on tips to get by each day, the large fluctuations associated with their work had a negative impact on their physical health and overall sleep quality. This impact was greatest when the percentage of one’s pay made up from tips was greater.

Similar results emerged from other studies involving gig workers on Mechanical Turk and white-collar workers whose income was commission or bonus related. Indeed, even approaches such as mindfulness were not found to buffer the harmful physical symptoms of volatile pay effectively.

As a result, the researchers believe that if employers are serious about caring for the health and wellbeing of staff, then they will think twice about providing volatile pay to the workforce, and instead give them the peace of mind that comes from stable forms of compensation.

“Unions are another way that workers could secure stronger protections against volatile pay,” the researchers explain. “Raising the proportion of base pay and reducing dependence on volatile pay should help protect workers’ health in many industries.”