In their article 'Exploding myths about the
gig economy' (VoxEU, 28 November 2016), Jacques Bughin and Jan Mischke
highlight and discuss the importance of the rising phenomenon ‘gig economy’.
The writers refer that some studies emphasize on the role and the significance
of the ‘gig economy’ whereas others downplay the role of 'gig economy'.
So, what is the 'gig economy'?
According to the Cambridge English
Dictionary the gig economy is “a way of working that is based on people having
temporary jobs or doing separate pieces of work, each paid separately, rather
than working for an employer”.
So the ‘gig economy’ refers to the new part
of economy which depends on the independent workforce instead of traditional
economy who depends on the large company.
I think if we would like to understand and evaluate
the role of "gig economy”, we should compare between the positive and
negative aspects of "traditional economy” and "gig economy”.
The traditional economy depends on the
large company where the work forces depend on their employer as the only source
for their income and they have long-term commitments towards the employers. The
work forces in the traditional economy get permanent income and package of benefits
such as: sick pay, retirement, rewards, etc.
With respect to "gig economy" the
work forces are independent, and their works depends on achieving specific
tasks, their commitments towards the clients are temporary and relate to
fulfill the tasks. Thus the workforce in the "gig economy" will not
get perks as the employees in the traditional type. On other hand, the
"gig economy” provides many features to the independent work forces such as
flexibility, autonomy and self-employment. Thus they have the ability to earn
more when they work more. The "gig economy” supports the policy "Do
not put all your eggs in one basket" because the employee here does not
depend on one employer as the only source for his income.
I think also the traditional economy has
got many benefits from the "gig economy". The large companies in the traditional economy
hire the independent work forces for specific tasks for specific time to avoid
the high cost in the case of permanent employees.
So I think the large companies should support the independent employees through many ways such as raising their experiences through free training courses or encourage them by giving them rewards. Thus, I would say the relation between the gig economy and traditional economy does not base on the competition, but in contrast each of them depends on the other part.
So I think the large companies should support the independent employees through many ways such as raising their experiences through free training courses or encourage them by giving them rewards. Thus, I would say the relation between the gig economy and traditional economy does not base on the competition, but in contrast each of them depends on the other part.