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WORK IN

THE AGE OF
DATA
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Work in the Age of Data 2

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The Impact of the Gig Economy by Jamie Woodcock 3

The gig economy, along with the future of


work, has become a popular topic of discus-
sion. The gig economy, broadly speaking,
involves working arrangements that are
closer to “gigs” than traditional kinds of jobs.
This riffs off the ideas that work is becoming
more like playing a music gig at a venue, with
no guarantee of continuing work, but with
workers also free to choose where to go next.
Short-term or precarious work has a history
longer than formal work arrangements, both
within jobs that now have so-called “stan-
dard employment contracts” and roles that

The Impact of the


remain informalized, like domestic work.
The current interest in the gig economy
has also been spurred by the application of

Gig Economy
digital technology and the use of platforms.
Often, when talking about the gig econo-
my, the subject is usually platform econo-
my—and more specifically platform work.
App-based transportation—like Uber, food

Jamie Woodcock
delivery, or other consumer-facing services—
represents particularly visible changes to
work. Throughout this chapter, the focus
will be narrower than the gig economy, ex-
amining how gig work is increasingly being
mediated via digital platforms. As Nick Sr-
nicek (2017: 48) has argued:

Platforms, in sum, are a new type of firm;


they are characterized by providing the
infrastructure to intermediate between
different user groups, by displaying mo-
nopoly tendencies driven by network ef-
fects, by employing cross-subsidization
to draw in different user groups, and by
having designed a core architecture that
governs the interaction possibilities.

This focus is important because, although


broader gig work has existed for a long time,
the platformization of this work is drastically
This chapter discusses the impacts of the gig reshaping the gig economy—with the poten-
economy on labor markets in Europe. The tial to create widespread impacts across the
gig economy and platform work have become entire economy. To give some sense of the
popular topics, while reshaping the experience scale, Richard Heeks (2017) estimates that
of work for increasingly larger numbers of around seventy million people have found
people. However, too often debates around the work via a platform. In the slightly longer
gig economy lack empirical insight. This chapter term, McKinsey estimates that 540 million
people could be seeking work through “online
seeks to introduce readers to these issues,
talent platforms” by 2025, with a prediction
starting with the preconditions that shape the that up to 230 million would find work (Man-
emergence and dynamics of the gig economy. yika et al., 2015). Moreover, Guy Standing
The next part examines the resulting labor (2016) predicts that, by then, one third of all
market trends, including effects beyond the gig work will be mediated via digital platforms.
economy; the experience for workers, drawing This chapter seeks to introduce readers to
on current research; and possible future these issues, starting with the preconditions
directions, both positive and negative. that shape the emergence and dynamics of
Work in the Age of Data 4

the gig economy. The next part examines the The gig economy, broadly aspects of technology, society, politics and
resulting labor market trends, including ef- speaking, involves working their combination.
fects beyond the gig economy; the experience arrangements that are closer The first precondition is technological:
for workers, drawing on current research; the to “gigs” than traditional kinds “platform infrastructure.” The availability
impact on society more widely; and con- of underlying technology, including 4G con-
of jobs
cludes with possible future directions, both nectivity, cloud computing, GPS networks
positive and negative. and so on, is an important factor in facil-
itating the rapid growth of platforms as a
model. The second precondition involves
the “digital legibility of work,” which refers
The Preconditions of the Gig Economy to whether or not the work can be mediated
via a digital platform. For example, delivery
Before examining the impacts of the gig work has a high level of digital legibility as it
economy, it is first worth exploring the pre- involves a discrete task that can be mapped
conditions that shape its emergence. Other- onto a process with defined steps. However,
wise, there is a risk of seeing the gig economy there are many kinds of less well-defined
as only taking a particular form, shaped by work that can be challenging to organize
technological factors, thereby reducing the via a platform. The third precondition
agency of other important actors in the pro- combines technological and social aspects:
cess. At its core, the platforms that mediate “mass connectivity and cheap technology.”
gig work use “tools to bring together the sup- The availability of affordable smartphones
ply of, and demand for, labor” (Graham and with regular Internet connectivity is im-
Woodcock, 2018: 242). However, both aspects portant for both workers and consumers
of labor are shaped by preconditions, which of platforms. Without this, services can be
then facilitate and encourage the growth of unreliable and do not meet the needs of ei-
this kind of work. As identified by Woodcock ther party. Transportation platforms excel
Bike couriers working for Foodora and Deliveroo
and Graham (2019), there are nine precondi- take to the streets to demand higher wages, at offering a service at any time—and often
tions that shape the gig economy, involving Berlin, June 2017 when other alternatives are not possible—
The Impact of the Gig Economy by Jamie Woodcock 5

Gig work can be divided in and this is facilitated by technology that is employment offers, being able to schedule
two: “geographically tethered cheap enough for mass uptake. work around other aspects of life, or to be
work,” which requires workers The fourth is a social precondition relat- able to work more or in addition to other jobs.
to be in a particular place, and ed to “consumer attitudes and preferences,” While there are a variety of reasons why this
“cloudwork,” which refers to tying into the previous factor. These kinds of may be, including the prevalence of low paid
work that can be completed platforms can only grow if there is an exist- and bad quality jobs, this desire for flexibility
remotely via a computer ing market for these kinds of services (or one of workers is an important factor to consider.
can be manufactured in various ways) and The seventh and eighth preconditions
customers are amenable to accessing these are related to political economy and involve
services via platforms. For example, domestic “state regulation” and “worker power.” Both
work platforms require—of course—a market of these factors shape the environment from
for domestic workers that involves custom- which the gig economy and platforms are es-
ers who are used to having workers in their tablished. The first, state regulation, sets the
homes. In countries where these practices regulatory environment that provides limits
are more common, for example in South Af- upon—or indeed facilitates—the growth of
rica, there are existing ways through which this kind of work. However, in many cas-
domestic workers are recruited and managed. es, existing regulation will not have been
These often draw upon longer informal re- designed to consider the specificity of this
lationships, often with vouching or other kind of work, meaning platforms can evade
forms of trust playing a key part in both. For or avoid regulation. Worker power, on the
domestic work platforms like SweepSouth or other hand, refers to the strength of the exist-
Domestly to be successful, there has to be a ing labor movement, understanding how its
shift in customer attitudes and preferences relative power can shape the environment in
toward using digital platforms instead. This which platforms operate—tipping the scale
example connects with the fifth social pre- in favor of workers and their rights. For ex-
condition: “gendered and racialized relation- ample, in countries with strong trade unions
ships of work.” Domestic work has long been of taxi drivers, the entry of platforms has
gendered as female work, as well as being ra- been frustrated or blocked. In other cases,
cialized with minority and migrant workers. worker-friendly regulation has been brought
Similarly, in the UK and other global north in following pressure. The balance between
countries, driving and delivery work has his- worker power and corporate lobbying there-
torically been considered as male work, while fore sets an important terrain upon which
often racialized too. In both cases, this means platforms are established and developed.
many workers who are not covered by effec- The ninth and final precondition is a com-
tive employment regulation due to irregular bination of political economy and technol-
status, as well as facing racist marginalization ogy, referring to the dynamics of “globaliza-
more widely. Many of these dynamics can be tion and outsourcing.” In a sense, this refers
carried over into platform work. more specifically to one particular kind of gig
The sixth precondition is a combination work. Broadly, gig work can be divided in two.
of social aspects and political economy: the First, “geographically tethered work,” which
“desire for flexibility for/from workers.” There requires workers to be in a particular place—
are two pushes for the flexibilization of work whether cleaning a house, delivering food, or
with platforms that are closely related. The so on. The second is “cloudwork” which refers
first is platforms seeking a high flexible work- to work that can be completed remotely via
force that can be engaged at short notice with a computer. This could either be microwork
little commitment to continuing work. For on platforms like Amazon Mechanical Turk,
example, delivery drivers who are paid only with the short tasks like image tagging or tran-
to make deliveries, particularly at peak times, scription, or the longer online freelancing on
not needing to be paid during times they are platforms like UpWork (Woodcock and Gra-
not needed. This allows platforms to scale ham, 2019). Clearly, the latter involves dynam-
rapidly, while reducing staffing costs—par- ics of outsourcing that build on increasingly
ticularly through the use of self-employment globalized networks of digital logistics. For
status, which will be discussed in more detail example, much of the behind the scenes work
later. However, only considering this imper- of the Internet is completed by these remote
ative for flexibility misses the demand—and gig workers, like moderating video content
indeed often discussed benefit by workers— in the Philippines. However, the former also
for more flexible working practices. Many involves these processes as much of this work
workers want more flexibility than traditional is undertaken by migrant workers, moving
Work in the Age of Data 6

across borders and becoming outsourced is spreading to other diverse areas includ- look hard enough, on every platform these
workers within new national boundaries. ing health services, teaching, legal services typologies can be found—as well as many in
These preconditions do not determine and a wide variety of manual and mainte- between. However, there are important dy-
the form that the gig economy will take, but nance tasks” (Huws et al., 2016: i). Across namics that are becoming increasingly com-
when taken together they have a deep influ- the countries they surveyed in Europe, 9% mon across experiences of the gig economy.
ence on shaping the potential outcomes of of people in the UK had carried out paid work The first is related to the flexibility of
the gig economy in different countries. It is via platforms, with 9% in the Netherlands, the gig economy. Flexibility is an overused
important to draw attention to these different 10% in Sweden, 12% in Germany, and 19% concept that can mean a variety of things in
preconditions, particularly those that are not in Austria. In a US-based study, it was found practice—from workers having the ability to
directly related to technology, in order to show that 8% of Americans worked on an online choose when to work, to the freedom for em-
how there are “actually myriad gig econo- “gig” platform in 2016, rising to 16% for the ployers to hire and fire at will, and so on. Flex-
mies all over the world that are experienced eighteen to twenty-nine age bracket (Smith, ibility is therefore often experienced within
in significantly different ways” (Woodcock 2016). However, for many workers, this was constraints, flexibility from or to something.
and Graham, 2019). Despite this, as the re- supplemental income in addition to other For those with relatively little power, this flex-
mainder of the chapter will show, there are forms of employment. The findings of the ibility is often experienced as precarity. This
increasingly common threads, dynamics, and survey argue that for a small, but growing, means difficulties in predicting how much
outcomes that are emerging—but that these number of workers, platform work is becom- they will earn, or how long paid work will con-
do not foreclose the possibilities for this kind ing a main part of their income. Workers are tinue. To illustrate this, it is worth returning
of work to be reshaped in the near-future. “choosing it from a desperation to find any to an example from my own fieldwork with
source of income, rather than as an active Deliveroo drivers in London (Woodcock and
career choice” (Huws et al., 2016: iii). Graham, 2019). The story articulates many
Despite these findings, it has proven dif- of the issues involved with this kind of work:
Labor Market Trends ficult to accurately measure the size of the
gig economy. First, there are important dif- One of the riders, who had been a par-
Building upon these different preconditions, ferences on how researchers define the gig ticipant in Jamie’s research since the
the gig economy has grown and developed. In economy—meaning that the contours change beginning, told a particularly revealing
an earlier phase, some researchers discussed from study to study. Second, there is little data story about the experience of working
this as the start of the “sharing economy” available at present. As noted earlier, Heeks for Deliveroo. At the end of an interview,
(Sundararajan, 2017). However, these prom- (2017) estimates seventy million registered Jamie asked the driver what he thought
ises of the gig economy have not come true. workers on platforms, but that only around the most challenging part of the work
For example, Sarah Kessler (2018: x) describes 10% are active at any one time. The flexibili- was. Expecting the driver to mention the
a story told to her by a start-up founder: that ty and low barrier to entry means that many low pay, insecure contracts, or threat of
“we could work for our neighbors, connect people may try working on platforms, or move accidents, he was instead told the fol-
with as many projects as we needed to get by, between this kind of work and other forms. lowing story. The driver worked at two
and fit those gigs between band rehearsals, Despite the difficulty in providing an accurate other jobs in addition to Deliveroo. In the
gardening, and other passion promises.” This measure, it is clear that “ever more work … morning he would wake up and go to the
proposed way of working has, instead, arrived is being mediated by platforms” (Woodcock first job, trying to eat breakfast before he
not to fit around existing relationships, but, and Graham, 2019). For example, in the UK left. Over lunch he worked a shift for De-
instead, to begin breaking up previous ways one estimate puts the gig economy workforce liveroo, making sure to grab something
of working. In particular, this involves a break at 1.1 million, this is as many as work for the quick to eat on the way. In the afternoon
from what has been called the “standard NHS (Balaram et al., 2017). Regardless of the he worked at the third job, before start-
employment relationship.” This denotes an quantitative figures, the gig economy is creat- ing the evening shift at Deliveroo. The
expectation for workers that they will have a ing important qualitative changes—both for most challenging aspect of the work was
“stable, socially protected, dependent, full- workers and society more broadly. making sure he ate enough food once he
time job” that is subject to protections from got home to ensure he had the energy to
the state and influenced by collective agree- get up and repeat the process the next
ments (Bosch, 2004: 618). day … Deliveroo is marketed as a service
In particular sectors, like transport and The Experience for Workers for delivering food to stylish young pro-
delivery, there are clear and visible trends fessionals, but the reality is that many
emerging. Uber now has an estimated four The experience of working in the gig econo- of his deliveries were to people too ex-
million drivers globally, with over 40,000 my, like that of working many jobs, is diverse. hausted from working to make their own
in London. In a study by Huws et al. (2016), People bring a wealth of experiences, wants, dinner. This is especially ironic given
they concluded that platform “work is not and needs to work with them. It is therefore how Deliveroo brands itself. His story is
only growing fast but spreading into diverse not possible to say there is a singular expe- therefore a damning indictment of the
occupational areas,” including both work rience of the gig economy. In a US context, realities of gig work in London: a work-
completed online, or forms of gig work like Alexandrea Ravenelle (2019: 1) has argued er struggling to eat enough calories to
delivery that are mediated online. They also that there are “strugglers,” “survivors,” and deliver food to people who are too tired
note that there is “evidence that this model “success stories” in the gig economy. If you from work to make their own.
The Impact of the Gig Economy by Jamie Woodcock 7

This is an important story for a number of The use of self-employment This precariousness has been driven by a
reasons. First, it is an indictment of the work- statuses exacerbates many range of “social, economic, and political
ing practices that many workers face in the of the negative outcomes for forces” that “have aligned to make work
gig economy. While they have the flexibility workers, beyond what is found more precarious” (Kalleberg, 2009: 2). The
to work when they choose, for this worker it actual precariousness of a job—that is, the
in precarious work like call
meant trying to top up the minimum wage likelihood that it will end—is also related to
centers
income of other jobs in order to try and sur- the experience of precarity—the threat that
vive in a highly expensive city like London. the job could end at any time (Woodcock,
This worker had never met anyone Freedom from traditional forms 2014). The impact of precarity can become
who was employed by Deliveroo. The first of work has the potential greatly amplified beyond actual figures of
meeting was with people considered legally to create larger societal workers losing their jobs. This also effects
self-employed like him to register and set problems in the future. In many workers beyond the workplace, feeding into
up the app, while any problems were han- countries, social security is workers ability to engage in other aspects of
dled through an outsourced call center. This connected to the standard society too.
meant it was a very different experience to ei- employment contract
ther the café, the bookshop, or other forms of
low-paid work common in London. The irony
of his struggle to consume enough calories The Impact on Society
to deliver food draws attention to the con-
tinuing materiality of this kind of platform The gig economy is reshaping not only work,
work. This means understanding how the but also aspects of society more broadly. One
road networks, with other drivers and risks of the key preconditions discussed earlier was
of accidents, the weather, personal fitness, the “desire for flexibility for/from workers,” as
the ease or difficulty of finding addresses, re- well as “consumer attitudes and preferences”
maining phone battery and data signal, and (Woodcock and Graham, 2019). These could
all the other aspects that are hidden behind be combined to make sense of the impact of
the digital interface of the app. the gig economy on society more broadly:
There is an increasing body of research workers, platforms, and consumers are all
that points toward the negative outcomes seeking greater flexibility from these kinds
for workers in the gig economy (Aloisi, 2016; of platform services. Workers are seeking to
Scholz, 2017; Graham et al., 2017; Graham and find more flexible and adaptable ways to work;
Woodcock, 2018; Wood et al., 2018; Woodcock platforms are freeing themselves from previ-
and Graham, 2019; Cant, 2019). The use of ous employment regulations, and consumers
self-employment statuses exacerbates many increasingly expect on-demand services.
of these negative aspects, beyond what is Due to the customer-facing nature of
found in precarious work like call centers many of the high-profile platforms these are
(Woodcock, 2017a). For many workers, the changing consumption patterns. For exam-
experience is that work is increasingly pre- ple, Uber has widely increased the provision
carious. As defined by the ILO (2011: 5), of private-hire drivers, with a surplus of driv-
ers, meaning consumers often only have to
In the most general sense, precarious wait a short time for a pickup. The lower pric-
work is a means for employers to shift es have meant increased take-up of these ser-
risks and responsibilities on to workers. vices, transforming transport practices across
It is work performed in the formal and many cities. Food-delivery platforms are also
informal economy and is characterized changing consumption patterns. They have
by variable levels and degrees of objec- also shifted the relationship with restaurants,
tive (legal status) and subjective (feeling) through the establishment of so-called “dark
characteristics of uncertainty and inse- kitchens” (Butler, 2017) in which the food is
curity. Although a precarious job can no longer made in a restaurant, but in special
have many faces, it is usually defined purpose-built delivery units, often hosted in
by uncertainty as to the duration of em- shipping containers.
ployment, multiple possible employers These shifting consumption patterns
or a disguised or ambiguous employment have a common trend that ties them togeth-
relationship, a lack of access to social pro- er. Whether passenger journeys, delivery of
tection and benefits usually associated food, or other on-demand services, these al-
with employment, low pay, and substan- low other workers to externalize aspects of
tial legal and practical obstacles to joining their “social reproduction” (cf. Bhattacharya,
a trade union and bargaining collectively. 2017), that is, recovering from and preparing
Work in the Age of Data 8

for work. At the most obvious level, faster of their work will be borne predominantly by Uber co-founder Ryan Graves, with CEO Dara
Khosrow, rings a ceremonial bell at the New
transportation options open up more time— private individuals.
York Stock Exchange as the company makes its
either staying later at work or having more As has been noted, the gig economy relies initial public offering on May 10, 2019
non-work time—while delivery food does not upon a self-employment status which frees
require time to prepare. Therefore, the gig the platform or company from the require-
economy connects to broader trends of work ment to pay benefits and cover the risks of clude that “these faceless digital brokers take
intensification that can be seen throughout work. For workers driving in the gig economy no responsibility for the health and safety
other sectors of the economy (Graeber, 2018). this is particularly important. In a study of gig of the people who accrue income for them”
This involves taking parts of our lives that workers in London: (Christie and Ward, 2018: 5). These risks ex-
might previously have been organized in tend beyond the time that people are work-
the home—notwithstanding all the problems 42% said they had been involved in a ing. The insurance group Zurich has warned
that that can entail—and opening them up to collision where their vehicle had been that there is “a blind spot in the current pen-
the market and venture capital. damaged and 10% of the total sample sion system. Gig economy workers don’t have
This freedom from traditional forms of said that someone had been injured as a access to a workplace pension, meaning mil-
work also has the potential to create larger so- result and this was usually themselves … lions aren’t saving enough for retirement”
cietal problems in the future. In many coun- three quarters of respondents (75%) said (quoted in Shaw, 2017). They estimate five
tries, social security—whether to cover sick- that that there had been occasions while million people are at risk of not having ad-
ness, retirement, or maternity/paternity—is working when they have had to take ac- equate pension provision—including those
connected to the “standard employment con- tion to avoid a crash (Christie and Ward, working for platforms but also insecure
tract” in various ways. The short-term flexi- 2018: 4–5). forms of work like zero-hour contracts.
bility of the gig economy has brought some There is also little discussion of the en-
benefits to people working the gig economy, Moreover, the authors of the study warned vironmental impact of platform work. The
as well as to those who now rely on external- that the incentive systems in the gig econ- Internet infrastructure and the vast server
izing the costs of overwork in various ways. omy encouraged “chasing jobs,” exacerbat- farms upon which these services run is hav-
However, given the lack of social provisions ing risks to get more work, which further ing an increasing impact on the environ-
for people in the gig economy, the social costs “increases the exposure to risk.” They con- ment. For example, platform operations now
The Impact of the Gig Economy by Jamie Woodcock 9

Parts of our lives that


might previously have been
organized at home—such as
cooking—are opening up to the
market and venture capital

In the absence of traditional


forms of trade unionism,
like collective bargaining,
platform operators have been
shaping work and also actively
influencing state regulation
through lobbying

Signage outside the co-working office space


group WeWork in London
Work in the Age of Data 10

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—Christie, N. and Ward,
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bying (Woodcock and Graham, 2019). This on the editorial board of Notes from Below and Work and the Digital Gig
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PhD in Sociology at Goldsmiths (University of Country Perspective on
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The Impact of the Gig Economy by Jamie Woodcock 11

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JAMIE WOODCOCK HOW TO CITE THIS ARTICLE
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In Work in the Age of Data. Madrid: BBVA, 2019.

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