Block by Block: Andrew Garin

Block by Block: Research at Work is a new research spotlight series that highlights the innovative work being done by CMU researchers through the Block Center, showcasing how their projects are driving impactful solutions at the intersection of technology and society.

At the recent 'New Platforms and Technologies for Matching Workers to Jobs' mini-conference hosted by the Block Center for Technology and Society, Dr. Andrew Garin presented his research on the impacts of a task-level pay standard for platform gig workers.

Researcher: Andrew Garin

Imagine a gig economy worker spending an hour completing tasks on an app, only to earn less than minimum wage. A recent study from the Economic Policy Institute found that approximately one in seven gig workers in the spring of 2020 earned below the federal minimum wage on an hourly basis — and under current legal definitions, this is neither illegal nor necessarily a violation of labor standards.

“Gig work” broadly refers to activities coordinated through digital platforms (such as ride-sharing, food delivery, grocery shopping, and task-based errands). These platforms allow workers to choose their own schedules and, in many cases, work across multiple apps simultaneously. However, with this flexibility often comes lower pay and fewer labor protections. Policymakers and researchers continue to debate whether gig workers should receive rights similar to traditional employees and whether task-level pay standards could help raise earnings.

Dr. Andrew Garin, along with colleagues Dr. Brian Kovak and Yuan An, examines this issue by analyzing the impacts of Seattle’s recently enacted App-Based Worker Minimum Payment Ordinance. Introduced in 2024, the ordinance requires that app-based delivery workers receive a minimum payment per trip based on both the time spent and miles traveled.  The central question for their research is: Does the per-task minimum pay regulation increase the earnings of platform delivery drivers? This question is especially relevant in gig markets because tasks are allocated across all active workers. Unlike traditional labor markets, where wages may be negotiated individually, earnings in gig work are shaped collectively, with more workers on the road possibly diluting opportunities for everyone.

To estimate the ordinance’s effects, the research team uses data from Gridwise, a platform where gig workers track earnings and trip information across multiple apps. The study focuses on 1,285 frequent delivery drivers completing more than 20 monthly trips in Washington State prior to the policy change. Using a difference-in-differences design, the researchers compare outcomes for drivers who primarily work in Seattle (the treatment group) to those in other areas of Washington (the control group). With the key identifying assumption that, without the reform, trends in earnings and activity would have remained parallel across both groups.

Preliminary findings reveal that while Seattle’s pay ordinance initially increased earnings, those gains diminished quickly over time. Base pay rose by approximately $4 per delivery for treated drivers immediately following the policy’s implementation. However, this improvement was offset by a reduction in tipping (the source of a significant share of delivery income), which fell by about $1.50 per trip. Additionally, drivers experienced roughly a 20% decline in the number of trips completed per month, suggesting that fewer delivery opportunities were available after the reform. As a result, although drivers saw a noticeable earnings boost during the first month, those gains largely disappeared in subsequent months. By the second month, total monthly earnings for Seattle drivers showed no meaningful net improvement compared to drivers elsewhere in Washington.

These early results suggest that task-level minimum pay standards alone may not be sufficient to increase overall earnings in gig markets with low barriers to entry. Because additional workers can always join the platform, and customers may change tipping behavior, wage regulation can produce unintended shifts that counteract initial gains. Some key dynamics, such as utilization changes and tipping responses, are not accounted for in standard minimum wage frameworks.

Dr. Garin’s work contributes important evidence to policy debates on how best to support gig workers. As policymakers across the country consider extending protections to app-based workers, studies like this highlight the complex trade-offs involved in regulating work that does not fit easily into traditional labor models. Continued research will be central to designing policies that ensure gig workers are fairly compensated and economically secure.

Are you a CMU student interested in getting involved? This project has been made possible with the support of graduate student researchers. Students interested in learning about opportunities to work on similar projects can fill out this interest form. Future projects will seek students with strong applied economics training and a willingness to develop proficiency in Stata.

Are you a CMU faculty member? The Block Center is gearing up to release our seed fund call for proposals for this year. Keep an eye out for an announcement later this fall semester.