Tuesday, October 13, 2015

Things They Should Study: how does the gig economy affect productivity?

In economics, they often talk about productivity, most often bemoaning the fact that it isn't high enough.

I wonder if anyone has studied the effect of the gig economy on productivity? Because it seems like it would have a strong negative impact.

For example, a freelance translator has to not only translate, but also handle marketing, advertising, billing, online presence, inquiries from prospective clients, and all the administrative aspects of running a business of which I'm unaware. In comparison, a staff translator spends nearly all their time translating, and their employer's administrative staff deal with most of the rest of that stuff.  So it's easier for the staff translator to be more productive.

I'd imagine the same would hold in most occupations.  And, on top of that, the shorter the gig is, the less productive it is.  If industry standard is six-month contracts and then they transition to three-month contracts, workers have to spend time looking for work (rather than doing work) twice as often, and employers have to spend time hiring twice as often.  More and more person-hours are being spent on the non-productive tasks associated with connecting people with work rather than simply spending the time on work.

I wonder if anyone has yet studied this enough to quantify it?

2 comments:

laura k said...

So true. I think no one studies it because productivity usually refers only to a company's bottom line. The freelance/contract worker is managing their own business on their own time, not on company time. So no one cares.

Well, someone cares: people who advocate for workers. But we don't care about productivity.

impudent strumpet said...

Maybe people who advocate for workers could leverage the productivity argument to help win over people who care about productivity.