The Future of Work: A Comprehensive Study of the Gig Economy Beyond Low Labor-Value Added Jobs

Abstract

Traditionally, firms face many challenges with employment: Geographical discrepancies, inefficient talent sourcing methods, accessibility, and, more recently, COVID-19. As a result, the gig economy, or the freelance economy, has become increasingly popular as a method of employment after the pandemic. This type of business model is proliferating due to its easy accessibility, along with environmental factors, such as the pandemic and social factors, such as the trend of digitalization in developing countries. This new model also brings many benefits to gig workers, including an easier pathway to employment and globalization, consumers, bringing them a wide array of services on an accessible platform, and corporations, helping them source talent and solve resource allocation issues. Yet, many corporations and industries are still in the early stage of utilizing gig workers, or refuse to outsource gig talent, because of social perceptions, skill set mismatches, and technical inefficiencies. In this paper, empirical analysis of the platform's fundamental components, challenges with society, and outlook is presented along with a relevant case study and a recommendation for a potential future development of the gig economy.