Macro Lunch Talks: Jyotsana Kala, University California, Irvine

Date and Time
Location
North Hall 2111

Speaker

Jyotsana Kala, University California, Irvine

Biography

I’m a PhD candidate in the Department of Economics at UC Irvine. My research interests lie in Labor Economics & Macroeconomic Theory.I’m on the Econ job market this year (2025-26). My job market paper explores the implications of algorithmic wage discrimination on worker welfare in the gig economy (draft coming soon). Workers share their stories of navigating this reality here.

Title

"Algorithmic Wage Discrimination: Evidence from Uber"

Abstract

Digital platforms are increasingly relying on algorithms to personalize pay for gig workers. This paper presents the first empirical evidence of algorithmic wage discrimination in the labor market and estimates its causal impact on earnings. Using novel data on Uber drivers and a staggered difference-in-differences research design, I find that algorithmic wage setting significantly increases personalization in pay and decreases average earnings per trip. The impact on earnings varies systematically with drivers’ rejection rates, with the decline in earnings being larger for drivers with lower rejection rates. These results are consistent with Uber learning about drivers’ reservation wages from their engagement history (acceptance and rejection decisions) on the platform and using this information to tailor wage offers.