Bus 101 assign 4c,4b, and 4d
amberrose
Assign4dQsGigEconomyRevolution-5.docxA “Gig Economy” Revolution? by: Josh Zumbrun And Anna Louie Sussman Jul 27, 2015
TOPICS: Economics, Labor and Business Models
SUMMARY: Uber and TaskRabbit use apps to match those who need a service with those willing to provide it. These companies sometimes suggest that they are revolutionizing the labor market. The evidence doesn't seem to support that claim. The share of Americans self-employed declined over the past decade. It may be that workers have a primary job and do some work on the weekend or for extra cash, but the share of people who hold multiple jobs is also in decline. The new labor market is called the 'gig economy.' Economists are skeptical about whether work arranged using a smartphone is truly novel or merely represents the ongoing coexistence of regular and irregular work. This doesn't mean companies like Uber are not affecting their industry. Taxi drivers certainly understand the competitive threat from Uber. The issue is employment. The data seem to suggest that the gig economy is not yet responsible for making fundamental changes to employment and labor markets.
CLASSROOM APPLICATION: Reaching a conclusion about an industry, market or economic phenomena requires evidence. Understanding the data is important to businesses, consumers and policymakers. Sometimes perceptions are not backed by data. One example is the impact of what's called the 'gig economy' in which workers are matched via smartphone with those in need of service. Companies including Uber and TaskRabbit provide services and offer individuals a chance to earn money outside the traditional labor force. The workforce isn't showing significant change in the level of self-employment or multiple jobs. This could suggest that companies in the gig economy are responsible for creating much economic activity despite valuations and popularity. The data isn't suggesting these companies with their newer business models aren't important or successful. All it shows is the effect on employment.
QUESTIONS: 1. Define the term gig economy and give some company examples. (Answer based article information and by doing a web search on the topic…) 2. Choose any one of the companies you listed in Question 1 and describe the business model of this member of the gig economy. 3. Explain why consumers, companies and policymakers might at the same time be interested in and also concerned about the gig economy. 4. Despite the effect on employment, a company in the gig economy can disrupt its industry. Describe an example of this disruption?
End
