for whom to work, and when to do the work. These are the
“free agents” and the “casual earners” in the table. This
independence naturally appeals to entrepreneurial types who
prefer to be their own boss, even though it often comes with
uncertainty regarding the source of the next paycheque. For
these individuals, the rise of the gig economy signals an
exciting opportunity, albeit one that demands hard work and
perseverance.
For many other individuals, however, the gig economy is clearly
a second choice, one unemployed workers may feel pushed
into. These are the “reluctants” and the “financially strapped”
in the table, and they would prefer to be a traditional employee
in a traditional job. For these workers, the rise of the gig
economy likely represents rising job insecurity and anxiety
about the future.
From the perspective of firms, the rise of the gig economy
reflects changes in technology and the nature of work. Profit-
maximizing firms choose to hire workers in a traditional
relationship when the benefits of doing so exceed the costs;
and for many years it was simpler and cheaper to have workers
“in house” rather than to be entering into repeated contractual
arrangements with outside suppliers. But with the growing
importance of service (rather than manufacturing) jobs and the
rapid spread of low-cost digital technologies, it has become
easier and cheaper for many firms to “outsource” jobs. The
jobs may range from low-wage janitorial workers to high-wage