The Gig Economy: Rise in the US

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Table of Contents

Objectives
Literature Review
Methodology
Collection of Data
Survey Questions
Foreseen Limitations
Research Timeline
References

The gig economy, known as the sharing economy, is an e-commerce system where customers, independent workers, and businesses engage in an exchange of goods and services. Lyaskovskaya and Khudyakova (2021), highlight that the impact of the COVID-19 lockdowns has contributed significantly to the rising of the gig economy in the United States. According to Huang et al., (2020), there is a direct relation between the rise of unemployment rates to the growth of the gig economy. This research aims to understand the gig economy, how it works, and its recent rise as a significant economic sector, and its impact.

Objectives

The objectives of this study are to:

Examine the reasons for the rise of the gig economy (the growth of nonemployer of more than 10 percent from 2010 to 2016) in the United States (Abraham, et al. 2019).
Discuss the future of the gig economy and its influence on the economic indicators of the industry (Tan, et al. 2021).

Literature Review

The gig economy has been around for a long time with a rapid growth trend in recent years. In 2017, this economy had 55 million participants in the U.S., and estimates show that 33% of the U.S. companies widely use gig workers, known as gigs (Tan et al., 2020, p. 75). The seller operates independently and offers time and labor to produce the actual ware (Tran, M., & Sokas, R. K., 2017). In the example of the Upwork platform, it was identified that the platform enables the autonomy needed for gig workers, and serves as a means of controlling the transactions’ viability (Jarrahi, et al., 2019).

The gig economy consists of long-term and short-term contingent work arrangements for consultants, freelancers, temporary contract workers, independent professionals, and contractors. In recent years, the gig sector has evolved into a powerful economic chain, with the growth of nonemployers of 10 percent from 2010 (Abraham, et al. 2019). It offers a flexible work environment allowing participants to set their own schedules and work at their own demand. According to Tran and Sokas (2017), this flexible work environment also attracts the majority of millennials, as it requires having access to modern technologies. In recent years, more and more workers have joined this economy, including; Lyft/Uber drivers, Airbnb landlords, on-call workers, online marketplace sellers, seasonal workers, and contingent and part-time workers. Specialists use different technology platforms depending on the work arrangement between the client and the gig worker (Ford Lumban Gaol et al., 2021). There are four commonly used platforms for the gig economy; online freelance platforms, transport platforms, crowd work platforms, and home/delivery task platforms.

However, the level of expertise and wages depend on the platform’s type of service and industry. For example, crowd work platforms pay low wages, and the gig workers have less control over the availability of the work Berg et al., (2018), while sellers using the home/delivery and transportation platforms get better pay and flexibility (Bulian, 2021). On the other hand, online freelance platforms such as Upwork charge higher fees for their service, and the gig workers earn more money and have higher flexibility. According to McGovern (2017), the payment is determined by the skill level needed and the duration of service provided.

Methodology

The research will be conducted using a quantitative method, utilizing survey questionnaires. These questionnaires will be presented to people who use gig platforms, such as the Uber / Lyft riders, Grubhub users and drivers, Airbnb vacation renters, and others involved in the gig economy (Scholtz et al., 2020). Internet will be a primary medium to discover the gig platforms and communicate with the individuals taking part in the research (Christensen et al.; 2018). Additionally, forums like Reddit will be used to collect feedback for the survey questions. The questionnaires will be presented to individuals participating in the gig economy, and their perspectives regarding this phenomenon will be analyzed (Aspers & Corte, 2019). The research will use available peer-reviewed literature on the gig economy to support the concepts used in the study and ensure the study’s objectives are met.

Collection of Data

After presenting written survey questionnaires to various individuals based on knowledge, skills, abilities, experiences, collecting and compiling results into a single database system is essential. The simple statistical tool which may be used is the Excel Tables and graphs, which will properly visualize the collected data. This centralized repository and reporting system is vital to efficiently and accurately interpret results. The final results and reliability of the study will be evaluated using a comprehensive statistical analysis.

Survey Questions

The survey questions include:

How old are you?
What is your nationality?
What is your current place of residence?
Have you ever been involved in gig working before (and what type)?
Do you agree with Abraham’s study that nowadays, more and more people are engaged in the gig economy?

Foreseen Limitations

The research may face a few potential limitations, such as difficulties in data collection from the gig workers due to necessity to present the aim through the remote communication tools. For instance, Ross & Bibler Zaidi, (2019) recommends paying for a ride to have an in-person request to get access to Uber / Lyft drivers to join the research. Most gig workers participate in the gig economy as a side hustle on top of their full-time job and have a busy schedule (Tran, M., & Sokas, R. K., 2017). Therefore, it may be challenging to find time for them to participate in the research. However, available resources, peer-reviewed research, namely Abraham’s research about the rising of gig economy, and previous studies will be analyzed to support and provide conclusive data.

Research Timeline

References

Aspers, P., & Corte, U. (2019). What is qualitative in qualitative research. Qualitative Sociology, 42(2), 139–160.

Berg, J., Furrer, M., Harmon, E., Rani, U., & Silberman, M. S. (2018). Digital labour platforms and the future of work. Towards Decent Work in the Online World. Rapport de l’OIT.

Bulian, L. (2021). The gig is up: Who does fig economy actually benefit? Interdisciplinary Description of Complex Systems, 19(1), 106–119.

Ford Lumban Gaol, Filimonova, N., & Acharya, C. (2021). Impact of disruptive technologies on the sharing economy. Igi Global, Publisher of Timely Knowledge.

Huang, N., Burtch, G., Hong, Y., & Pavlou, P. A. (2020). Unemployment and worker participation in the gig economy: Evidence from an online labor market. Information Systems Research, 31(2), 431-448.

Lyaskovskaya, E., & Khudyakova, T. (2021). Sharing Economy: For or against Sustainable Development. Sustainability, 13(19), 11056. MDPI AG.

Luc, C., Ritika, D., V., G., Roberta, Alexandria, V., Laura, S. P., Maria, & J., P., Robert. (2018). Framing the Future of Work. Web.

Jarrahi, M. H., Sutherland, W., Nelson, S. B., & Sawyer, S. (2019). Platformic Management, Boundary Resources for Gig Work, and Worker Autonomy.Computer Supported Cooperative Work (CSCW) 29, 153–189. Web.

Mcgovern, M. (2017). Thriving in the gig economy: how to capitalize and compete in the new world of work. Career Press.

Novitz, T. (2021). Gig Work as a Manifestation of Short-Termism: Crafting a Sustainable Regulatory Agenda. Industrial Law Journal, 50(4), 636–661.

Ross, P. T., & Bibler Zaidi, N. L. (2019). Limited by our limitations. Perspectives on Medical Education, 8(4), 261–264.

Scholtz, S. E., de Klerk, W., & de Beer, L. T. (2020). The Use of Research Methods in Psychological Research: A Systematised Review. Frontiers in Research Metrics and Analytics, 5(1).

Tan, Z. M., Aggarwal, N., & Morley, J. (2020). (PDF) The ethical debate about the gig economy: a review and critical analysis. ResearchGate. Web.

Tran, M., & Sokas, R. K. (2017). The Gig Economy and Contingent Work: An Occupational Health Assessment. Journal of occupational and environmental medicine, 59(4), e63–e66.

Abraham, K. G., Haltiwanger, J., Sandusky, K., & Spletzer, J. (2019). The Rise of the Gig Economy: Fact or Fiction? AEA Papers and Proceedings, 109, 357–361.

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