University of Oregon Gig Economy Workers & Labor Classifications Question
Question Description
I’m working on a Economics discussion question and need a sample draft to help me understand better.
To help me do this question please write at least a paragraph response to this. Thanks!
This graded discussion is your practice assignment for Module 7 and accounts for all 10 points of your Module 7 practice grade. You must both post a comment and respond to a post of your choosing in order to get full credit. Your initial post must be at least 3 sentences to receive credit.
Many issues in labor economics can be understood from multiple perspectives, and the gig economy has been among the most contentious issues in public policy for the past decade. Please be respectful and professional in your comments here.
Discussion topic:
Download and read the August 2020 article regarding Uber and Lyft’s response to California’s AB5 legislation
Actions requiring the companies to treat independent contractors as employees. The article is linked for download and attached to this discussion page. If you are interested, you can also find a news report from the bill’s passing in September 2019 here
and Uber’s response to the legislation here (Links to an external site.). According to some industry executives, a change in status from independent contractor to employee adds 20 to 30 percent to the company’s labor costs (source) (Links to an external site.).
After reading the article please respond one or more of the following prompts.
- Review the categories of quasi-fixed costs associated with employment. Why are these costs paid by the employer? Could any of these costs be considered compensation or wages? Should these costs be the responsibility of the worker?
- What are the welfare implications if a firm gains a market advantage from avoiding the legal protections and benefits provided to traditional employees? Would Uber exist if it were forced to comply with Assembly Bill 5 more broadly?
- How well do gig economy workers fit into the category of employee or independent contractor? Is there justification to add a new category of worker to our labor classifications?
- If you were trying to get a startup going, would you want your workforce to consist of permanent employees, gig workers, or a mixture? As a worker, would you prefer a traditional job or gig work?
- Is the gig economy important enough to regulate?
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