Independent Contracting, Self-Employment, and Gig Work - Evidence from California Tax Data - Working Paper 30327

Sep 19, 2026

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Use de-identified California personal income tax return data to quantify and characterize independent contracting and self-employment. Work is identified through the presence of Schedule C and/or Form 1099 information returns. Results estimate that 14.4% of California workers aged 18–64 in tax year 2016 had such income, while only 1.4% earned from online labor platforms. Lower earners show higher likelihood and greater dependence on this income source.

LanguageEnglish

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Pages67

Reading Time23 min

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Abstract

Introduction

NBER WORKING PAPER SERIES INDEPENDENT CONTRACTING, SELF-EMPLOYMENT, AND GIG WORK: EVIDENCE FROM CALIFORNIA TAX DATA Annette Bernhardt Christopher Campos Allen Prohofsky Aparna Ramesh Jesse Rothstein Working Paper 30327 [http://www.nber.org/papers/w30327](http://www.nber.org/papers/w30327) NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 August 2022 We are grateful to Charles Davis, Samantha Fu, Nick Gebbia, John Iselin, Patrick Kennedy, Robbie Linden, Ian Eve Perry, Sarah Thomason, and Dario Tortarolo for excellent research assistance. We are also grateful to Julie Moreno, Sean McDaniel, Chad Angaretis, Xudong Chen, Bud Flynn, and Jeff McTygue for helping us understand the tax data. This project was funded in part by the United States Department of Labor Scholars Program (under contract DOL-OPS-15-C-0060), the Alfred P. Sloan Foundation, and the Ewing Marion Kauffman Foundation. Nothing in this paper is an official position of the Franchise Tax Board. The contents of this publication and views expressed are solely the responsibility of the authors and should not be attributed to FTB, DOL, or other funders, nor does mention of trade names, commercial products, or organizations imply endorsement of same by FTB or any funders of the work. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed additional relationships of potential relevance for this research. Further information is available online at [http://www.nber.org/papers/w30327.ack](http://www.nber.org/papers/w30327.ack) [NBER working papers are circulated for discussion and comment purposes. They have not been](NBER working papers are circulated for discussion and comment purposes. They have not been)[ ](NBER working papers are circulated for discussion and comment purposes. They have not been)[peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies](peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies)[ ](peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies)[official NBER publications.](official NBER publications.) © 2022 by Annette Bernhardt, Christopher Campos, Allen Prohofsky, Aparna Ramesh, and Jesse Rothstein. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Independent Contracting, Self-Employment, and Gig Work: Evidence from California Tax Data Annette Bernhardt, Christopher Campos, Allen Prohofsky, Aparna Ramesh, and Jesse Rothstein NBER Working Paper No. 30327 August 2022 JEL No. J24,J4,J46 ABSTRACT We use de-identified data from California personal income tax returns to measure the frequency and nature of independent contracting and self-employment work in California. We identify this work by the presence of a Schedule C on the tax return and/or the receipt of a Form 1099 information return. We estimate that 14.4% of California workers aged 18-64 in tax year 2016 had some independent contracting or self-employment income; about half of these workers also had earnings from traditional W-2 jobs during the year. We find that only a small share (1.4%) of workers had earnings from online labor platforms (often called gig work) . Workers with low earnings were significantly more likely to earn independent contracting or self-employment income and to rely primarily or exclusively on that income. We explore the characteristics of workers engaging in independent contracting and self-employment and their distribution across family type, geography, and industry. Annette Bernhardt Institute for Research on Labor and Employment University of California, Berkeley 2521 Channing Way \#5555 Berkeley, Cali 94720 [annette.bernhardt@b

FAQs

How does the study identify independent contracting and self-employment in the tax data?

It identifies such work using the presence of Schedule C on the tax return and/or receipt of a Form 1099 information return.

What share of California workers are estimated to have independent contracting or self-employment income in 2016?

The study estimates 14.4% of California workers aged 18–64 in tax year 2016 had independent contracting or self-employment income.

How common is gig work based on earnings from online labor platforms?

Only a small share of workers (1.4%) had earnings from online labor platforms often called gig work.

Sep 19, 2026

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