Gig Economy

This entry presents the history, geography, business, regulations, and the roles of gig workers, platform/algorithms, and employers, focusing primarily on the USA and the EU. The gig economy is informally referred to also as the fourth industrial revolution or the 1099 economy, emphasising sharing, freelance, or platform work; it is a complex and changing business model and regulatory environment. In practice, the gig economy refers to a tripartite relation between workers, platforms/apps, and employers, leading to a two-sided market, where algorithms match supply and demand for paid labour and clients. It is only recently that the gig economy has started to be conceptualised, and its implications, challenges, and impacts are captured in economic law and society, including the power dynamics related to the interplay between economics, technology, regulation, and communities. Conceptually, the gig economy is important, as small paid work has always been present in society for all types of workers and beneficiaries. This new business model of on-demand work has some perceived advantages, such as freedom of work, under-regulation, efficient use of capital, driving down costs, and improving services. However, there is a dualisation of anti-power between workers and non-employers that may lead to precarious work, less free workers, and shadow corporations that distort the market using game changers like digital management algorithms. Currently, the size of the gig economy comprises 154–435 million gig workers out of the world’s 3.63 bn workers, with a market size of USD 557 bn, and is still expanding.