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Overview of Attempts to Measure The Gig Economy with Considering The Role of Data in Making Managerial Decisions

  
31 dic 2024
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Figure 1.

Current and expected value of the global gig economy market in 2023–2028 (in USD billions)
(Source: Own compilation based on Business Research Insights data1)
Current and expected value of the global gig economy market in 2023–2028 (in USD billions) (Source: Own compilation based on Business Research Insights data1)

Figure 2.

Chosen countries' share of employee participation in the global platform economy (2017–2021)
(Source: Own compilation based on Ostoj, 2020, p.350)
Chosen countries' share of employee participation in the global platform economy (2017–2021) (Source: Own compilation based on Ostoj, 2020, p.350)

Figure 3.

Activity of gigers in chosen European countries (ever, during the last year, month, and week)
(Source: Own compilation based on Piasna, Zwysen and Drahokoupil, 2022, p.16)
Activity of gigers in chosen European countries (ever, during the last year, month, and week) (Source: Own compilation based on Piasna, Zwysen and Drahokoupil, 2022, p.16)

Selected methods for measuring the scale of activity in the gig economy (Source: Own compilation based on: Murtin, 2021)

Research method Short description Strengths Weaknesses
Information and communication technologies (ICT) research (ICT usage surveys) Computer, personal, or phone surveys

Good data comparability

Research conducted mainly in countries where the gig economy market is highly developed

Small size of the research sample

Much of the existing data comes from the USA, which is quite unique in terms of its labor market, characterized by relatively low levels of employment stability and a large number of gig workers. As a result, attempting to apply the results obtained for the USA to the global labor market may lead to incorrect conclusions

Research implementation is limited to a few selected countries

Risk of subjective replies from free lancers

Web scraping The process of data extraction which involves collecting information from online resources for later analysis. This data can be processed using big data techniques

Possibility of collecting data in real time

Possibility of comparative analysis of data in time

The issue of ethics is debatable

Legal data collection via web scraping requires consent from individual users. This means that research conducted using this method may not include freelancers who do not consent to the analysis of their data

Tax data Analysis of data collected by public administration, which is facilitated by the use of ICT systems

Generally, the study applies to all participants earning income in a given country (although it does not include people operating in the gray market)

Focusing solely on numerical data, completely disregarding qualitative data. Such a study does not take into account, for example, issues related to the type of platforms used or technological development

Differences between countries resulting from different tax solutions. This factor may seriously hamper the comparative analysis of data between individual countries

Big data analysis Analysis of large data sets enables ex post research and ex ante estimation of future phenomena, thanks to usage of forecasting methods and technique known as data science

Wide possibilities of data analysis and prediction

Difficulties in obtaining complete data

The data analysis process may be time-consuming

Focus on quantitative data, difficulty in analyzing qualitative information

Correlation and R2 coefficients between replies (Source: Own research)

Question 1 2 3 4 5 14a 14b 14c 14d 14e
1 1.00 - - - - - - - - -
2 0.14 1.00 - - - - - - - -
3 0.06 0.69 1.00 - - - - - - -
4 0.13 0.44 0.29 1.00 - - - - - -
5 0.03 –0.01 –0.08 0.00 1.00 - - - - -
14a –0.01 0.26 0.27 0.35 0.25 1.00 - - - -
14b 0.05 0.10 0.46 0.11 –0.04 0.37 1.00 - - -
14c 0.02 0.47 0.48 0.25 0.14 0.53 0.29 1.00 - -
14d 0.02 0.42 0.47 0.29 –0.03 0.71 0.44 0.71 1.00 -
14e –0.07 –0.34 –0.04 0.09 0.15 0.14 0.42 -0.18 0.06 1.00
R2 coefficients
1 - - - - - 0.00 0.00 0.00 0.00 0.00
2 - - - - - 0.07 0.01 0.22 0.18 0.12
3 - - - - - 0.07 0.21 0.23 0.22 0.00
4 - - - - - 0.12 0.01 0.06 0.08 0.01
5 - - - - - 0.06 0.00 0.02 0.00 0.02

Criteria for freelancer membership: author's proposal (Source: Own compilation)

Question Replies
1 Mean: 37.30Standard error: 0.60Median: 38Kurtosis: -1.22Minimum: 25Maximum: 50Mode: 32
2 Micro enterprise (up to nine employees): 12.90%Small enterprise (10–49 employees): 32.26%Medium enterprise (50–249 employees): 41.94%Large enterprise (over 250 employees): 12.90%
3 Mean: 5.58Standard error: 0.25Median: 5Kurtosis: 1.15Minimum: 1Maximum: 15Mode: 5
4 Secondary: 3.23%Bachelor’s degree: 32.26%Master’s degree: 64.52%
5 Yes: 58.06%No: 41.94%
6 Mean: 2.35Median: 2.00Kurtosis: -1.70Minimum: 0.00Maximum: 5.00Mode: 4.00
7, 8 Mean: 0.68Median: 0Kurtosis: 1.07Minimum: 0Maximum: 3Mode: 0 Mean: 8.29Median: 6Kurtosis: 12.59Minimum: 2.00Maximum: 60.00Mode: 6
9 Yes Yes – this is possible through state institutions that already have the appropriate data (e.g., tax data) 23.26%
Yes – but this will only be possible when a law is developed that clearly defines who is a giger 16.28%
Yes – the scale of the market can be assessed based on existing data from the statistical office and private sector entities that research the labor market 16.28%
No It is not possible because it is impossible to clearly define who is a freelancer 44.19%

Data regarding gig economy and gigers in making managerial decisions (Source: Own compilation based on: Freelancing w Polsce 2023, Useme Report; UK HM Government, The experiences of individuals in the gig economy; Ernst&Young, GIG on, Nowy Ład na rynku pracy)

Entity Where data can be used by management staff?
Useme HR planning, adaptation to project requirementsAnalysis of employment costs, adjustment of salary strategiesIdentification of market areas, analysis of potential clientsAssessment of employee competenciesEvaluation of marketing effectiveness, analysis of the job market
Ernst&Young Information useful for shaping the company's legal strategyIdentification of areas for technology investmentBetter understanding of gig workers’ expectationsAnalysis of the employment structure in the companyAnticipation of market trendsFinancial planning, adjustment of compensation strategiesAssessment of cost-effectiveness of employing gig workers
UK Government Evaluation of gigers’ skillsHR planning, adjustment of recruitment strategyIdentification of market areas for expansionAnalysis services costUnderstanding the expectations of gig workersAssessment of the effectiveness of recruitment platformsAdjustment of compensation and employment condition strategies

Data regarding gig economy in Europe – variance (Source: Own compilation based on Piasna, Zwysen and Drahokoupil, 2022, p_16)

Country Antytime (a) At least once during the last year (b) At least once during the last month (c) At least once during the last week (d) Part of total income €
Austria 28.10% 17.10% 10.80% 5.10% 2.30%
Bulgaria 31.20% 19.10% 9.80% 5.40% 2.90%
The Czech Republic 33.80% 20.10% 13.60% 8.80% 3.60%
Estonia 24.40% 15.00% 8.60% 4.90% 2.30%
France 25.90% 16.10% 11.50% 6.90% 2.60%
Germany 30.50% 16.90% 11.20% 5.70% 2.30%
Greece 27.50% 15.70% 9.90% 3.50% 2.50%
Hungary 20.90% 13.30% 9.60% 3.20% 4.60%
Ireland 31.40% 18.70% 13.20% 6.50% 4.30%
Italy 25.00% 12.40% 8.90% 5.30% 2.40%
Poland 37.30% 19.40% 7.80% 5.20% 4.10%
Romania 19.20% 9.90% 4.90% 3.30% 1.50%
Slovakia 43.30% 25.20% 14.30% 10.00% 3.60%
Spain 33.60% 18.60% 10.40% 5.10% 2.50%
- - - - - -
Average 29.44% 16.96% 10.32% 5.64% 2.96%
Variance 0.0041481 0.0014172 0.0006074 0.0003756 0.0000839
Std deviation 0.0644057 0.0376453 0.0246457 0.0193812 0.0091619

Examples of measuring the size of the gig economy (Source: Own compilation based on: Ostoj, 2020, pp_34-35)

Year Research subject Research area Pros and cons of the chosen method
2009–2010 Activity of freelancers registered on a selected digital platform (Amazon Mechanical Turk) Amazon Mechanical Turk (digital platform) Amazon Mechanical Turk (digital platform)
2010 Individual interviews conducted with analysts, journalists, managers, entrepreneurs Gig economy in IT and internet marketing Pros: In-depth individual interviewsCons: Exclusion of freelancers themselves, focusing on managers’, etc. point of view
2009–2012 Activity of freelancers registered on a selected digital platform (Upwork) Upwork (digital platform) Pros: Study conducted in different countriesCons: Limited exclusively to one digital intermediary platform (Upwork)
2013 Expert interviews with representatives of firms offering online outsourcing services Freelancers working online Pros: Interviews conducted with expertsCons: Limited emphasis on obtaining opinions from freelancers
2012–2015 Study of large datasets from various online platforms 30 English-language digital platforms Pros: Large research sample (study included about 1 million service buyers and about a quarter of a million performers)Cons: Lack of in-depth expert interviews
2015 Survey conducted on freelancers as part of Research ANd Development (RAND) the Rise and Nature of Alternative Work Arrangements in the USA) Freelancers Pros: Coverage of offline work in the study;Cons: Relatively small research group (just under 4000 respondents)
2015 Activity of freelancers registered on a selected digital intermediary platform (Up-work) Upwork (digital platform) Pros: Big data analysisCons: Limited analysis exclusively to one digital intermediary platform (Upwork)
2016–2017 Survey of freelancers from seven European countries Digital platforms Pros: Analysis covering gig workers engaged in both online and offline activities from various countriesCons: Focusing only the highly developed countries