Could Online Gig Work Drive Economic Growth?

Abstract

The gig economy is defined as digital, service based, on-demand platforms which are characterized by the prevalence of short-term contracts as opposed to permanent jobs (Greenwood et al., 2017). Approximately 33% of the workers in USA are part of the gig economy. A Federal Reserve Report (2017) puts a more conservative estimate, with 31% of the population engaged in gig-work. In a gig-world, there are two types of works: web-based work platform such as Freelancers and Upwork, which can be done from anywhere; and location-based work platform, which is done in the physical world through market-style apps such as Uber and Airbnb. Independent contractors use their skills or assets such as houses and cars, to complete tasks or gigs during a defined period of time to earn income.