Who Gets Caught in the Net? The Expanded Safety Net During Covid-19 and Precarious Workers

We examine how the expansion of social protection policies during Covid-19 affected workers’ job outcomes (employment probability and income changes) and access to the safety net. Leveraging a panel of 173 US workers across three arrangements—platform-based gig workers, creative freelancers, and low-wage W-2 employees—tracked from 2020–2024, we find that gig workers initially faced unemployment insurance access barriers, resulting in a 50%-point higher likelihood of receiving benefits later in the crisis than low-wage W-2 workers. Creative freelancers were more likely to remain employed and experienced fewer income losses. This paper shows that flexibilizing regulation may counter global labor precarity trends.