Nonregular Employment and Payout Policy: Evidence from the Massachusetts Independent Contractor Law

The authors are grateful for the helpful suggestions from an anonymous referee, Victoria Ivashina (editor), Stefan Petry (discussant), Rachel Jiqiu Xiao (discussant), Xiaohu Guo (discussant), Sharier Azim Khan (discussant), Alice Bonaimé, David Brown, Scott Cederburg, Daniel Greene, Vincent Intintoli, Sandy Klasa, Chris Lamoureaux, Olivia Newton, Andrea Rossi, Jason Sandvik, Neal Stoughton, Mitch Towner, Aazam Virani, and Ryan Williams as well as seminar participants at the 2021 Eastern Finance Association Annual Meeting, the 2021 Southwestern Finance Association Annual Meeting, the 2021 European Financial Management Association Annual Meeting, the 2020 Southern Finance Association Annual Meeting, and the University of Arizona. The previous version of this paper was titled “Alternative Work Arrangements, Payout Policy, and Employment: Evidence from Independent Contractor Misclassification Statute.” All errors in this paper are those of the authors only.