New Report: Risks and Rewards of Online Gig Work at the Global Margins

by Mark Graham 20/03/2017

The report poses questions for all stakeholders regarding how to improve the conditions and livelihoods of online gig workers.

by Mark Graham 20/03/2017

The cartogram depicts countries as circles sized according to dollar inflow during March 2013 on a major online labour platform. The shading of the inner circle indicates the median hourly rate published by digital workers in that country. See the report for details.

The growth of online gig work—paid work allocated and delivered by way of internet platforms without a contract for long-term employment—has been welcomed by economic development experts, and the world’s largest global development network is promoting its potential to aid human development. There are hopes that online gig work, and the platforms that support it, might catalyse new, sustainable employment opportunities by addressing a mismatch in the supply and demand of labour globally. Some of the world’s largest gig work platforms have also framed their business models as a revolution in labour markets, suggesting that they can help lift people out of poverty. Similarly, many policymakers expect that regions like Sub-Saharan Africa and Southeast Asia can capitalise on this digitally mediated work opportunity as youth-to-adult unemployment rates hit historic peaks. More broadly, it has been suggested that online gig work will have structural benefits on the global economy, such as raising labour force participation and improving productivity. Against this background, a new report by Mark Graham, Vili Lehdonvirta, Alex Wood, Helena Barnard, Isis Hjorth, and David Peter Simon, “The Risks and Rewards of Online Gig Work At The Global Margins” [PDF] highlights the risks alongside the rewards of online gig work. It draws on interviews and surveys, together with transaction data from one of the world’s largest online gig work platforms, to reveal the complex and sometimes problematic reality of this “new world of work”. While there are significant rewards to online gig work, there are also significant risks. Discrimination, low pay rates, overwork, and insecurity all need to be tackled head-on. The report encourages online gig work platforms to further develop their service, policymakers to revisit regulation, and labour activists to examine organising tactics if online gig work is to truly live up to its potential for human development, and become a sustainable situation for many more workers. The final section of the report poses questions for all stakeholders…

Development

What Impact is the Gig Economy Having on Development and Worker Livelihoods?

by Mark Graham 20/03/2017

Reflecting on some of the key benefits and costs associated with these new digital regimes of work.

by Mark Graham 20/03/2017

There are imbalances in the relationship between supply and demand of digital work, with the vast majority of buyers located in high-income countries (pictured). See full article for details.

As David Harvey famously noted, workers are unavoidably place-based because “labour-power has to go home every night.” But the widespread use of the Internet has changed much of that. The confluence of rapidly spreading digital connectivity, skilled but under-employed workers, the existence of international markets for labour, and the ongoing search for new outsourcing destinations, has resulted in organisational, technological, and spatial fixes for virtual production networks of services and money. Clients, bosses, workers, and users of the end-products of work can all now be located in different corners of the planet. A new article by Mark Graham, Isis Hjorth and Vili Lehdonvirta, “Digital labour and development: impacts of global digital labour platforms and the gig economy on worker livelihoods”, published in Transfer, discusses the implications of the spatial unfixing of work for workers in some of the world’s economic margins, and reflects on some of the key benefits and costs associated with these new digital regimes of work. Drawing on a multi-year study with digital workers in Sub-Saharan Africa and South-east Asia, it highlights four key concerns for workers: bargaining power, economic inclusion, intermediated value chains, and upgrading. As ever more policy-makers, governments and organisations turn to the gig economy and digital labour as an economic development strategy to bring jobs to places that need them, it is important to understand how this might influence the livelihoods of workers. The authors show that although there are important and tangible benefits for a range of workers, there are also a range of risks and costs that could negatively affect the livelihoods of digital workers. They conclude with a discussion of four broad strategies – certification schemes, organising digital workers, regulatory strategies and democratic control of online labour platforms—that could improve conditions and livelihoods for digital workers. We caught up with the authors to explore the implications of the study: Ed.: Shouldn’t increased digitisation of work also increase transparency (i.e. tracking,…