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

By:
Open Access
|Dec 2024

Figures & Tables

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 methodShort descriptionStrengthsWeaknesses
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 scrapingThe 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 dataAnalysis 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 analysisAnalysis 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)

Question1234514a14b14c14d14e
11.00---------
20.141.00--------
30.060.691.00-------
40.130.440.291.00------
50.03–0.01–0.080.001.00-----
14a–0.010.260.270.350.251.00----
14b0.050.100.460.11–0.040.371.00---
14c0.020.470.480.250.140.530.291.00--
14d0.020.420.470.29–0.030.710.440.711.00-
14e–0.07–0.34–0.040.090.150.140.42-0.180.061.00
R2 coefficients
1-----0.000.000.000.000.00
2-----0.070.010.220.180.12
3-----0.070.210.230.220.00
4-----0.120.010.060.080.01
5-----0.060.000.020.000.02

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

QuestionReplies
1Mean: 37.30Standard error: 0.60Median: 38Kurtosis: -1.22Minimum: 25Maximum: 50Mode: 32
2Micro 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%
3Mean: 5.58Standard error: 0.25Median: 5Kurtosis: 1.15Minimum: 1Maximum: 15Mode: 5
4Secondary: 3.23%Bachelor’s degree: 32.26%Master’s degree: 64.52%
5Yes: 58.06%No: 41.94%
6Mean: 2.35Median: 2.00Kurtosis: -1.70Minimum: 0.00Maximum: 5.00Mode: 4.00
7, 8Mean: 0.68Median: 0Kurtosis: 1.07Minimum: 0Maximum: 3Mode: 0Mean: 8.29Median: 6Kurtosis: 12.59Minimum: 2.00Maximum: 60.00Mode: 6
9YesYes – 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 giger16.28%
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 market16.28%
NoIt is not possible because it is impossible to clearly define who is a freelancer44.19%

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)

EntityWhere data can be used by management staff?
UsemeHR 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&YoungInformation 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 GovernmentEvaluation 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)

CountryAntytime (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 €
Austria28.10%17.10%10.80%5.10%2.30%
Bulgaria31.20%19.10%9.80%5.40%2.90%
The Czech Republic33.80%20.10%13.60%8.80%3.60%
Estonia24.40%15.00%8.60%4.90%2.30%
France25.90%16.10%11.50%6.90%2.60%
Germany30.50%16.90%11.20%5.70%2.30%
Greece27.50%15.70%9.90%3.50%2.50%
Hungary20.90%13.30%9.60%3.20%4.60%
Ireland31.40%18.70%13.20%6.50%4.30%
Italy25.00%12.40%8.90%5.30%2.40%
Poland37.30%19.40%7.80%5.20%4.10%
Romania19.20%9.90%4.90%3.30%1.50%
Slovakia43.30%25.20%14.30%10.00%3.60%
Spain33.60%18.60%10.40%5.10%2.50%
------
Average29.44%16.96%10.32%5.64%2.96%
Variance0.00414810.00141720.00060740.00037560.0000839
Std deviation0.06440570.03764530.02464570.01938120.0091619

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

YearResearch subjectResearch areaPros and cons of the chosen method
2009–2010Activity of freelancers registered on a selected digital platform (Amazon Mechanical Turk)Amazon Mechanical Turk (digital platform)Amazon Mechanical Turk (digital platform)
2010Individual interviews conducted with analysts, journalists, managers, entrepreneursGig economy in IT and internet marketingPros: In-depth individual interviewsCons: Exclusion of freelancers themselves, focusing on managers’, etc. point of view
2009–2012Activity 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)
2013Expert interviews with representatives of firms offering online outsourcing servicesFreelancers working onlinePros: Interviews conducted with expertsCons: Limited emphasis on obtaining opinions from freelancers
2012–2015Study of large datasets from various online platforms30 English-language digital platformsPros: 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
2015Survey conducted on freelancers as part of Research ANd Development (RAND) the Rise and Nature of Alternative Work Arrangements in the USA)FreelancersPros: Coverage of offline work in the study;Cons: Relatively small research group (just under 4000 respondents)
2015Activity 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)
2016–2017Survey of freelancers from seven European countriesDigital platformsPros: Analysis covering gig workers engaged in both online and offline activities from various countriesCons: Focusing only the highly developed countries
DOI: https://doi.org/10.2478/fman-2024-0022 | Journal eISSN: 2300-5661 | Journal ISSN: 2080-7279
Language: English
Page range: 359 - 378
Published on: Dec 31, 2024
Published by: Warsaw University of Technology
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year

© 2024 Emil ZELMA, published by Warsaw University of Technology
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.