Digitalisation of the economy and its impact on labour markets —
ver+2+web+version+Working+Paper+2016+02-EN+digitalisation
ver+2+web+version+Working+Paper+2016+02-EN+digitalisation
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<str<strong>on</strong>g>Digitalisati<strong>on</strong></str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g> <str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>its</str<strong>on</strong>g> <str<strong>on</strong>g>impact</str<strong>on</strong>g> <strong>on</strong> <strong>labour</strong> <strong>markets</strong><br />
<str<strong>on</strong>g>the</str<strong>on</strong>g>ir having access to this service, this “comm<strong>on</strong> good”, which in this case is<br />
<str<strong>on</strong>g>the</str<strong>on</strong>g> algorithm c<strong>on</strong>trolled by <str<strong>on</strong>g>the</str<strong>on</strong>g> company. This leads to imbalances <str<strong>on</strong>g>and</str<strong>on</strong>g>, at <str<strong>on</strong>g>the</str<strong>on</strong>g><br />
same time, precarity for some. When Uber sets up in Paris, <str<strong>on</strong>g>its</str<strong>on</strong>g> pr<str<strong>on</strong>g>of</str<strong>on</strong>g><str<strong>on</strong>g>its</str<strong>on</strong>g> go to <str<strong>on</strong>g>the</str<strong>on</strong>g><br />
shareholders in <str<strong>on</strong>g>the</str<strong>on</strong>g> Silic<strong>on</strong> Valley’ (Le M<strong>on</strong>de 2015).<br />
In <str<strong>on</strong>g>the</str<strong>on</strong>g> fairy tale <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> sharing <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g>, sharing most <str<strong>on</strong>g>of</str<strong>on</strong>g>ten entails payment,<br />
collaborati<strong>on</strong> may resemble dumping, <str<strong>on</strong>g>and</str<strong>on</strong>g> partnership exploitati<strong>on</strong>. As for <str<strong>on</strong>g>the</str<strong>on</strong>g><br />
c<strong>on</strong>sumers <str<strong>on</strong>g>of</str<strong>on</strong>g> services such as Uber or Airbnb, <str<strong>on</strong>g>the</str<strong>on</strong>g>y ‘are more interested in<br />
lower costs <str<strong>on</strong>g>and</str<strong>on</strong>g> c<strong>on</strong>venience than <str<strong>on</strong>g>the</str<strong>on</strong>g>y are in fostering social relati<strong>on</strong>ships with<br />
<str<strong>on</strong>g>the</str<strong>on</strong>g> company or o<str<strong>on</strong>g>the</str<strong>on</strong>g>r c<strong>on</strong>sumers’ (Eckhardt et al. 2015). Even though, as we<br />
will see below, some <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> less <str<strong>on</strong>g>of</str<strong>on</strong>g>ten quoted writers such as Michel Bauwens<br />
or Saskia Sassen, do believe in <str<strong>on</strong>g>the</str<strong>on</strong>g> str<strong>on</strong>g socially innovative potential <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g><br />
new technologies.<br />
In order to gain a clearer idea <str<strong>on</strong>g>of</str<strong>on</strong>g> this c<strong>on</strong>fused mix <str<strong>on</strong>g>of</str<strong>on</strong>g> services, Edgar Szoc has<br />
suggested three distinguishing criteria that can be useful as a starting point,<br />
even if <str<strong>on</strong>g>the</str<strong>on</strong>g>y st<str<strong>on</strong>g>and</str<strong>on</strong>g> in need <str<strong>on</strong>g>of</str<strong>on</strong>g> some refinement:<br />
<strong>—</strong> a m<strong>on</strong>etisati<strong>on</strong> criteri<strong>on</strong>: are <str<strong>on</strong>g>the</str<strong>on</strong>g> services <strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g>fer available free <str<strong>on</strong>g>of</str<strong>on</strong>g> charge<br />
or subject to payment?<br />
<strong>—</strong> an investment criteri<strong>on</strong>: in order to take part in this market as a service<br />
provider, is it necessary to own capital?<br />
<strong>—</strong> a locati<strong>on</strong> criteri<strong>on</strong>: can <str<strong>on</strong>g>the</str<strong>on</strong>g> services proposed be delocated? (Szoc 2015)<br />
The first criteri<strong>on</strong> appears, at a first glance, self-explanatory: Wikipedia <str<strong>on</strong>g>of</str<strong>on</strong>g>fers<br />
<str<strong>on</strong>g>the</str<strong>on</strong>g> greatest multilingual encyclopaedia in <str<strong>on</strong>g>the</str<strong>on</strong>g> world to every internet user.<br />
While it is true that it requests private d<strong>on</strong>ati<strong>on</strong>s <str<strong>on</strong>g>and</str<strong>on</strong>g> is built up <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> basis <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
open <str<strong>on</strong>g>and</str<strong>on</strong>g> voluntary cooperati<strong>on</strong>, <str<strong>on</strong>g>the</str<strong>on</strong>g> service is not <str<strong>on</strong>g>of</str<strong>on</strong>g>fered <strong>on</strong> a m<strong>on</strong>etised basis.<br />
CouchSurfing <str<strong>on</strong>g>of</str<strong>on</strong>g>fers, via <str<strong>on</strong>g>its</str<strong>on</strong>g> <strong>on</strong>line service, a form <str<strong>on</strong>g>of</str<strong>on</strong>g> temporary free<br />
accommodati<strong>on</strong> from pers<strong>on</strong> to pers<strong>on</strong>. Streetbank encourages <str<strong>on</strong>g>the</str<strong>on</strong>g> inhabitants<br />
<str<strong>on</strong>g>of</str<strong>on</strong>g> a neighbourhood to give or lend <strong>on</strong>e ano<str<strong>on</strong>g>the</str<strong>on</strong>g>r items <str<strong>on</strong>g>and</str<strong>on</strong>g> to supply<br />
neighbourhood services via <str<strong>on</strong>g>its</str<strong>on</strong>g> app. By c<strong>on</strong>trast, Ebay services entail payment,<br />
as do those <str<strong>on</strong>g>of</str<strong>on</strong>g> Airbnb, even though <str<strong>on</strong>g>the</str<strong>on</strong>g> services <strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g>fer are similar in kind to<br />
those provided by Streetbank <str<strong>on</strong>g>and</str<strong>on</strong>g> Couchsurfing (Stokes 2015). Payment <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
service providers <str<strong>on</strong>g>and</str<strong>on</strong>g> share investors is a core feature <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> operati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
platforms such as Uber or Airbnb.<br />
This criteri<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> m<strong>on</strong>etisati<strong>on</strong> is doubtless relevant in order to properly<br />
distinguish <str<strong>on</strong>g>the</str<strong>on</strong>g> sphere <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> genuinely collaborative – or sharing – <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g>,<br />
in which <str<strong>on</strong>g>the</str<strong>on</strong>g> intenti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘actors’ is not to make a pr<str<strong>on</strong>g>of</str<strong>on</strong>g>it <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> market but<br />
to <str<strong>on</strong>g>of</str<strong>on</strong>g>fer a service based <strong>on</strong> giving <str<strong>on</strong>g>and</str<strong>on</strong>g> reciprocity. Taken al<strong>on</strong>e, however, this<br />
criteri<strong>on</strong> appears to us inadequate for moving bey<strong>on</strong>d this simple distincti<strong>on</strong>,<br />
for we could place in <str<strong>on</strong>g>the</str<strong>on</strong>g> category <str<strong>on</strong>g>of</str<strong>on</strong>g> free services o<str<strong>on</strong>g>the</str<strong>on</strong>g>r social services such as<br />
Facebook, Twitter, Google, etc. whose shareholders do expect returns <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir<br />
investment. In reality, as stressed by Brynjolfss<strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> McAfee (2014), most <str<strong>on</strong>g>of</str<strong>on</strong>g><br />
<str<strong>on</strong>g>the</str<strong>on</strong>g> most popular sites in <str<strong>on</strong>g>the</str<strong>on</strong>g> world are free sites whose c<strong>on</strong>tent is fed <str<strong>on</strong>g>and</str<strong>on</strong>g><br />
managed by <str<strong>on</strong>g>the</str<strong>on</strong>g> users <str<strong>on</strong>g>the</str<strong>on</strong>g>mselves even though <str<strong>on</strong>g>the</str<strong>on</strong>g> intenti<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g>ir founders<br />
is not giving or voluntary service but pr<str<strong>on</strong>g>of</str<strong>on</strong>g>it (see <str<strong>on</strong>g>the</str<strong>on</strong>g> list <str<strong>on</strong>g>of</str<strong>on</strong>g> top sites:<br />
www.alexa.com/topsites).<br />
WP 2016.02<br />
29