What drives the Uber economy? New CGR paper highlights the role of labour regulations

One of the most significant ways in which labour markets are changing is the rise of the so-called “Gig Economy”, a pattern in which firms increasingly employ contractors. New disruptive companies are built on this model that allows these new start-ups to grow and adapt quickly while their contractors enjoy flexibility to work when and how they want. However, as the recent strikes of UberEats and Deliveroo couriers across London remind us, this new model of employment relations comes with its own sets of challenges and possible pitfalls.  A new CGR Working Paper, “The third worker: assessing the trade-off between employees and contractors”, by Pedro Martins, –Professor of Applied Economics at the School of Business and Management, Queen Mary, University of London,-provides new insights on the decision-making process of firms when choosing between contractors or employees.

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