The Rise of Gig Economy
The Rise of Gig Economy Imagine a hypothetical situation where you wake up one day and you have five short-term discrete contracts, and you are provided the choice to pick which ones to work on and you earn the money on a piece-work basis. Once you are done, you can take time off and enjoy the time with your family. The gig economy refers to a free market system where organizations contract with independent workers for a short-term period either a project or service. The onset of the pandemic had opened us up to a new approach to making a living without having to follow the traditional norms. The lack of certainty for stable jobs directed people to transition into the gig economy out of necessity. The Coase theorem put forward by the economist, Ronald Coase captures why a company is of the size that it is, this is concerning external transaction costs. The underlying issue of carrying out an activity externally is the legal property rights and not because it is external. However,...