Question

4) Income insurance. Read Gerald Friedman, “Dog Walking and College Teaching: The Rise of the Gig Economy” Real World Micro (chapter 7.4) and Zoe Sherman, “The Fallout from Subcontracting” (chapter 7.2).

a) What is the difference between traditional “jobs” and “gigs” including subcontracting work or temp jobs? Why might workers prefer one or the other? Why might employers?

b) What has happened to the share of American workers with steady jobs the 1970s? Who is responsible for the decline of “jobs”: does it reflect worker preferences or employer preferences? Why do you conclude this?

c) What might be done to make up for the decline in employer-provided income security? If workers employment and income has become more variable, would it be possible to provide some other form of income security (such as some form of insurance)? Would it be desirable to provide workers with some other form of income security? Might there be costs to this in reduced work effort and lower productivity? Might there be compensating gains?

Answer 1