Gig Economy

• What is a gig economy?

  A segment of the service economy based on flexible, temporary, or freelance jobs, often involving connecting clients and customers through an online platform.
• What are some factors behind the rise of the gig economy?

  • Technological advancements
  • Cost reduction for employers
  • Desire for work-life balance
  • Entrepreneurial opportunities
• How are technological advancements a factor behind the rise of the gig economy?

  Advances in technology, particularly the proliferation of smartphones and growth of internet connectivity, have made it easier for workers to find gig work through online platforms and apps.
• How is cost reduction for employers a factor behind the rise or the gig economy?

  Employers in the gig economy often benefit from cost savings. They avoid expenses associated with hiring full-time employees, such as providing benefits, office space, and training.
• How is the desire for work-life balance a factor behind the rise of the gig economy?

  Many individuals are drawn to gig work as it offers greater control over their work schedules.
• How are entrepreneurial opportunities a factor behind the rise of the gig economy?

  Git work can provide opportunities for entrepreneurship. Workers can become self-employed and offer their services directly to clients or customers.
• Give details about zero-hour contracts in the labour market:

  • Zero-hour contracts are employment agreements in which an employer does not guarantee a minimum number of working hours to an employee.
  • Instead, employer calls in the worker on an “as-needed” basis, typically with short notice, and pays the worker only for the hours worked.
  • These contracts are characterised by their lack of fixed working hours and the absence of an obligation on the employer’s part to provide regular work or stable income.
• When does a bi-lateral monopoly exist in the labour market?

  A bi-lateral monopoly exists when a monopoly supplier of labour (trade union) faces a monopsony buyer of labour.