As we argue from these pages, technology disrupts every aspect of our lives; the way we communicate, consume and work. Working to order, without a doubt, is not something new in industry or services. It exists since the dawn of economic activity.
What is new, in any case, is the proportion acquired by the sector of the economy that gathers its income in this way, working for hire and acting as “free agents and occasional earners.”
Nobel laureate in economics Ronald Coase anticipated this might happen in his theory of transaction costs. According to him, companies only hire staff directly when the costs of incorporating employees are lower than those of hiring contractors or third parties outside the company.
The labor market that emerged after the 2007/8 international financial crisis thanks to transaction costs’ reduction in companies doing outsourcing – boosted by technological progress – brought the proportion of independent workers to very high levels.
So high that they deserve their own name: the “gig” economy. That word refers to the transitory character of the work itself; comes from musical jargon and refers to short performances by musical groups.
The “gig” world includes consultants, independent contractors and professionals, as well as freelancers and temps, and has been under close study.
However, since it is technology that makes it possible, it has become difficult to classify what counts as part of this economy and what does not. That is why there are contemporary analysis saying that it is growing, while others point out that it would be contracting slowly.
When we talk about the gig economy, people think of Uber, Lyft, TaskRabbit, and Airbnb. They are companies that have popularized the concept globalizing its operations. But we should also add multi-job holders, contingent and part-time workers as well as highly specialized consultants and contractors to the list.
Flexibility, “online” communication and offshoring are frequently quoted as the main characteristics allowing the expansion of the “gig” economy. With these tools, companies can use talent located thousand miles awas, in different time zones.
It is likely that, as happened after the financial crisis of the first decade of the century, the “gig” economy will grow strongly once the SARS-CoV-2 pandemic is definitively left behind.
That`s why it is worth analyzing future scenarios. For example, the relationship between the economy “gig” and “blockchain” technology.
The Massachusetts Institute of Technology (MIT) has launched a “blockchain wallet” where its students can carry their degrees and credentials, thus accrediting their knowledge and skills.
Platforms such as Coinlancer and Ethlance incorporate blockchain to increase the transparency of economic transactions between clients and contractors, using cryptocurrencies as remuneration.
There are even fintechs that are creating specific tools for this economic model (such as Azlo start-up).
As is always the case, in times of change is necessary to balance emerging opportunities with difficulties arising from this true revolution in the labor markets of the 21th century.
In many countries, social security is linked to standard employment contracts, this represents a social problem that must be addressed. Likewise, the typical employment relationship of “office environments”, which facilitates interaction with other workers, peers or superiors, to solve problems, acquire or improve skills is not present.
Simultaneously, aspects of our daily lives that were previously reserved to domestic activity, such as cooking, are opening up to private capital and venture investment.
While some workers see the gig economy as an opportunity to supplement their formal income and others are unwilling to leave their status as free agents or occasional earners, many wonder if the difference with previous outsourcing experiences (which were associated with job insecurity) lies in the willingness of workers to use new technologies to organize their income and whole working life in a new way.
