microwork

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

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…

This mass connectivity has been one crucial ingredient for some significant changes in how work is organised, divided, outsourced, and rewarded.

Ed: You are looking at the structures of ‘virtual production networks’ to understand the economic and social implications of online work. How are you doing this? Mark: We are studying online freelancing. In other words this is digital or digitised work for which professional certification or formal training is usually not required. The work is monetised or monetisable, and can be mediated through an online marketplace. Freelancing is a very old format of work. What is new is the fact that we have almost three billion people connected to a global network: many of those people are potential workers in virtual production networks. This mass connectivity has been one crucial ingredient for some significant changes in how work is organised, divided, outsourced, and rewarded. What we plan to do in this project is better map the contours of some of those changes and understand who wins and who doesn’t in this new world of work. Ed: Are you able to define what comprises an individual contribution to a ‘virtual production network’—or to find data on it? How do you define and measure value within these global flows and exchanges? Mark: It is very far from easy. Much of what we are studying is immaterial and digitally-mediated work. We can find workers and we can find clients, but the links between them are often opaque and black-boxed. Some of the workers that we have spoken to operate under non-disclosure agreements, and many actually haven’t been told what their work is being used for. But that is precisely why we felt the need to embark on this project. With a combination of quantitative transaction data from key platforms and qualitative interviews in which we attempt to piece together parts of the network, we want to understand who is (and isn’t) able to capture and create value within these networks. Ed: You note that “within virtual production networks, are we seeing a shift…