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Digitalisation of the economy and its impact on labour markets —

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Christophe Degryse<br />

have been overthrown <str<strong>on</strong>g>and</str<strong>on</strong>g> transformed. The changes in questi<strong>on</strong> affect services<br />

<str<strong>on</strong>g>and</str<strong>on</strong>g> industry, manual <str<strong>on</strong>g>and</str<strong>on</strong>g> intellectual <strong>labour</strong>, salaried workers <str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> selfemployed.<br />

1.1 A new world <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g>?<br />

In a sort <str<strong>on</strong>g>of</str<strong>on</strong>g> recent combinati<strong>on</strong> <str<strong>on</strong>g>of</str<strong>on</strong>g> new industrial revoluti<strong>on</strong> <str<strong>on</strong>g>and</str<strong>on</strong>g> gold rush,<br />

innumerable young firms have been rushing in to develop applicati<strong>on</strong>s<br />

designed to m<strong>on</strong>etise <str<strong>on</strong>g>the</str<strong>on</strong>g> new areas <str<strong>on</strong>g>of</str<strong>on</strong>g> potential opened up by <str<strong>on</strong>g>the</str<strong>on</strong>g>se trends. In<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> areas <str<strong>on</strong>g>of</str<strong>on</strong>g> transport, delivery, accommodati<strong>on</strong>, financing, repairs (plumbing,<br />

electricity, etc.), hiring services, <str<strong>on</strong>g>and</str<strong>on</strong>g> so forth, new initiatives are seeing <str<strong>on</strong>g>the</str<strong>on</strong>g> light<br />

every day.<br />

According to Christine Balagué, vice-president <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> French C<strong>on</strong>seil nati<strong>on</strong>al<br />

du numérique (Le M<strong>on</strong>de, 23/08/2015), any individual equipped with a mobile<br />

ph<strong>on</strong>e can now ‘become a producer, create services, or at least place services <strong>on</strong><br />

<str<strong>on</strong>g>of</str<strong>on</strong>g>fer’ for <str<strong>on</strong>g>the</str<strong>on</strong>g> purpose <str<strong>on</strong>g>of</str<strong>on</strong>g> earning a little spare cash, making it through to <str<strong>on</strong>g>the</str<strong>on</strong>g> next<br />

salary payment, or topping up <str<strong>on</strong>g>the</str<strong>on</strong>g>ir benef<str<strong>on</strong>g>its</str<strong>on</strong>g>. In parallel, ownership that<br />

previously seemed to c<strong>on</strong>fer entitlement to <str<strong>on</strong>g>the</str<strong>on</strong>g> exclusively private <str<strong>on</strong>g>and</str<strong>on</strong>g> part-time<br />

use <str<strong>on</strong>g>of</str<strong>on</strong>g> an expensive asset (car, apartment, tools, etc.) has come to represent for<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> owner a capital that can be exploited in a number <str<strong>on</strong>g>of</str<strong>on</strong>g> different ways for <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

purpose <str<strong>on</strong>g>of</str<strong>on</strong>g> generating income. This sudden transformati<strong>on</strong> gives rise to<br />

numerous questi<strong>on</strong>s about <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘pers<strong>on</strong>/worker’ but also <str<strong>on</strong>g>the</str<strong>on</strong>g> ‘platform/employer’,<br />

about <str<strong>on</strong>g>the</str<strong>on</strong>g> locati<strong>on</strong> <str<strong>on</strong>g>of</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> (<str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> taxes), about m<strong>on</strong>opoly <str<strong>on</strong>g>and</str<strong>on</strong>g> competiti<strong>on</strong>,<br />

about financing <str<strong>on</strong>g>and</str<strong>on</strong>g> social models, about l<str<strong>on</strong>g>and</str<strong>on</strong>g> use <str<strong>on</strong>g>and</str<strong>on</strong>g> development, about<br />

individual <str<strong>on</strong>g>and</str<strong>on</strong>g> collective resp<strong>on</strong>sibilities, etc.<br />

The phenomen<strong>on</strong> is in essence internati<strong>on</strong>al <str<strong>on</strong>g>and</str<strong>on</strong>g> reflects social inequalities<br />

with, <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> <strong>on</strong>e h<str<strong>on</strong>g>and</str<strong>on</strong>g>, <str<strong>on</strong>g>the</str<strong>on</strong>g> unemployed or precarious worker who will seek to<br />

top up meagre wages or benef<str<strong>on</strong>g>its</str<strong>on</strong>g> by <str<strong>on</strong>g>of</str<strong>on</strong>g>fering to work for Uber <str<strong>on</strong>g>and</str<strong>on</strong>g>, <strong>on</strong> <str<strong>on</strong>g>the</str<strong>on</strong>g> o<str<strong>on</strong>g>the</str<strong>on</strong>g>r,<br />

<str<strong>on</strong>g>the</str<strong>on</strong>g> dynamic executive who will arrange for a pers<strong>on</strong>al assistant in India to<br />

manage his accounts <str<strong>on</strong>g>and</str<strong>on</strong>g> his appointments diary. While this image may be a<br />

caricature, it illustrates <str<strong>on</strong>g>the</str<strong>on</strong>g> two ends <str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> chain whose links are <str<strong>on</strong>g>the</str<strong>on</strong>g> three<br />

comp<strong>on</strong>ents <str<strong>on</strong>g>of</str<strong>on</strong>g> internet, Big Data <str<strong>on</strong>g>and</str<strong>on</strong>g> smartph<strong>on</strong>e.<br />

These three comp<strong>on</strong>ents have today come to form <str<strong>on</strong>g>the</str<strong>on</strong>g> underpinnings <str<strong>on</strong>g>of</str<strong>on</strong>g> a new<br />

<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>, hence, <str<strong>on</strong>g>of</str<strong>on</strong>g> a new world <strong>labour</strong> market 1 . The accompanying<br />

discourse used to describe this emerging reality is still very tentative: digital,<br />

collaborative, sharing, <strong>on</strong>-dem<str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g>… It is interesting to observe that<br />

this new <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g> ‘has been undetected in statistics for <str<strong>on</strong>g>the</str<strong>on</strong>g> most part, largely<br />

because <str<strong>on</strong>g>the</str<strong>on</strong>g> ec<strong>on</strong>omics <str<strong>on</strong>g>of</str<strong>on</strong>g> 21 st century digital technology is quite different from<br />

previous technologies that have <str<strong>on</strong>g>impact</str<strong>on</strong>g>ed <str<strong>on</strong>g>the</str<strong>on</strong>g> labor market at a broad scale.<br />

1. In <str<strong>on</strong>g>the</str<strong>on</strong>g> framework <str<strong>on</strong>g>of</str<strong>on</strong>g> this limited study we will not deal with o<str<strong>on</strong>g>the</str<strong>on</strong>g>r aspects <str<strong>on</strong>g>of</str<strong>on</strong>g> ‘disruptive’<br />

technologies such as genomics, advanced materials, 3D printing, etc. for which we refer <str<strong>on</strong>g>the</str<strong>on</strong>g><br />

reader to, in particular, McKinsey Global Institute : ‘Disruptive technologies : Advances that<br />

will transform life, business, <str<strong>on</strong>g>and</str<strong>on</strong>g> <str<strong>on</strong>g>the</str<strong>on</strong>g> global <str<strong>on</strong>g>ec<strong>on</strong>omy</str<strong>on</strong>g>’ (Manyika et al. 2013).<br />

8 WP 2016.02

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