Adewale Maye – CEPR
The rise of the gig economy and the relentless undermining of traditional employment structures is often seen and presented as an inexorable characteristic of modern digital economies. That’s partly a consequence of skewed observation, partly a recognition that organisations can increasingly trade rich information for formal structures, and perhaps partly a change in the reality of people’s working lives. This article addresses the last of those points using recent US data – and concludes that the number of people working in the gig economy is small and growing only relatively slowly.
That’s a helpful balance to some of the hype, though it does unavoidably leave one of the central questions unanswered. If we can, to adapt Solow’s paradox, see the effects of the gig economy everywhere except in the productivity statistics, is that because they aren’t there to be seen, or because we are at the very early stage of what may be exponential growth? Perhaps, as with Solow’s original, it will take a decade or two to tell.