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Pros & Cons of Gig Work & Algorithms Managing Employees

February 25, 2025 / 16:44

This episode of The Ripple Effect features Lindsey Cameron, Assistant Professor of Management at the Wharton School, discussing gig work, algorithmic management, and the concept of the "good bad job." Topics include the relationship between gig workers and algorithms, the impact of technology on the workforce, and the broader implications for labor rights.

Cameron shares her experiences as a part-time Uber driver, highlighting the tension between worker satisfaction and the lack of support from algorithmic management. She discusses how gig workers often prefer this type of work over traditional jobs, despite the challenges they face.

The conversation also touches on the legal and social implications of gig work, including issues of insurance and minimum wage. Cameron emphasizes the need to understand the complexities of gig work, as many workers find value in the flexibility it offers.

Furthermore, Cameron's research extends to the Global South, where she observes the evolution of algorithmic management and its effects on marginalized groups. She advocates for a more thoughtful approach to the responsibilities of companies in the gig economy.

The episode concludes with a call to consider the future of work in light of these findings, urging listeners to reflect on the balance between innovation and worker rights.

TL;DR

Lindsey Cameron discusses gig work, algorithmic management, and the complexities of the "good bad job" in this episode.

Episode

16:44
00:00:00
But then you also have, and you use the term in your research,
00:00:04
the good bad job.
00:00:06
How does that come into play?
00:00:09
You know, I trust what my
00:00:10
workers tell me. You know, I didn't love driving, but a lot
00:00:15
of my drivers did like driving. And I think that was my first
00:00:18
"aha!" in the research. This is some sort of tension I need to look
00:00:22
into. So yes, the driver is telling me, "I'm earning more than
00:00:25
I was at Walmart, at the gas station. I can take care of my
00:00:29
family. You know, I like driving around town and showing people
00:00:32
the sights of my city."
00:00:33
Welcome to <i>The Ripple Effect</i>, the
00:00:35
podcast that takes you on a journey through the minds of
00:00:38
Wharton faculty. I'm your host, Dan Loney, and in each episode,
00:00:42
we'll be diving deep into the inspiration behind the
00:00:45
groundbreaking research that Wharton professors have
00:00:47
conducted and exploring how their findings resonate with the
00:00:51
world today.
00:00:53
Well, as more and more people add gig work to their professional mix,
00:00:57
we also see an increase in algorithmic management. This
00:01:00
means that workers are following the instruction of so-called
00:01:03
managers, who are the process of algorithms. Recent research
00:01:08
examines what that relationship is like and how workers feel
00:01:12
about being managed by tech and not by, directly, another human
00:01:16
being. Pleasure to be joined by Lindsey Cameron, Assistant
00:01:19
Professor of Management here at the Wharton School, who's led
00:01:22
this research. Lindsey, great to talk to you. It's been a while.
00:01:25
Always great to touch base.
00:01:26
Yeah, definitely. Feel the same over here.
00:01:29
I know how much you have focused on a lot of these
00:01:32
elements in your research, but I guess when you look at that
00:01:35
relationship, it becomes even more interesting with how gig
00:01:39
work kind of factors in.
00:01:41
Exactly. You know, one thing I
00:01:43
love to say about the gig economy is that it punches above
00:01:46
its weight class. It's only about 1% of the US workforce,
00:01:50
but 97% of people have heard of Uber and Lyft. You know, it's
00:01:54
about 60 to 70% of Americans have gotten in one of those
00:01:57
cars. And you think about all the sweeping legal regulations
00:02:01
that we've talked about before, Dan, in California,
00:02:04
Massachusetts, Minnesota, all about redefining gig work, which
00:02:07
has all these ripple effects for other types of independent
00:02:10
contractors. So the gig economy is really just a microcosm that
00:02:14
helps us understand broader changes in our economy.
00:02:17
Right. And I guess, where this research is concerned,
00:02:21
it's unique to
00:02:22
look at how these workers are being managed, and what that
00:02:26
might mean for the concept of management moving forward.
00:02:30
Exactly. We always think of management as like, having a
00:02:33
boss. And like, how do I avoid the bad boss and get the good
00:02:36
boss? But you know, we have these longer conversations,
00:02:39
larger conversations, about AI and control. And really what is
00:02:43
AI doing? It's trying to algorithmically manage people.
00:02:46
Outsource part of the work, the managerial function, to the
00:02:49
algorithms. And Uber is a really great example, from end to end.
00:02:53
You know, I worked part time as a driver for three years. Never
00:02:57
spoke to a single employee of Uber. Hiring, firing,
00:03:01
evaluating, disciplining, all done by an algorithmic
00:03:04
management system. It's really gives us a precursor or a view
00:03:08
into the future.
00:03:09
What did that experience really mean to you in
00:03:12
going through that? Because, I mean— I mean, it's unique. As
00:03:16
you said, we're so used to coming into the office and
00:03:20
meeting with a boss or talking with other people. And it's—
00:03:23
it's— it's a totally different experience, isn't it?
00:03:26
Yeah. It is— you know,
00:03:27
you do— you do have a lot of schedule flexibility. You
00:03:30
can— you can work around your schedule. But when things don't
00:03:33
go right, then you don't know what to do. There's this whole
00:03:37
period I drove in the DC, you know, Virginia area. And there
00:03:41
was, like three hours— I was sitting near Dupont Circle. It
00:03:45
was raining. I was seeing all these other cars go by and
00:03:48
people getting in the back seat. I'm like, "That's an Uber. I
00:03:51
think it's an Uber. But why am I not getting any rides? Why am I
00:03:55
here in the dark, not earning income?" And I was texting, and
00:03:58
they were like,"No, we're— you're logged on, you're eligible to
00:04:02
get rides." I had no real way to have voice and resolve an issue.
00:04:06
And the next day, they apologized. They said something
00:04:08
was down to the system. I was logged online, but not getting
00:04:11
rides. So there's this joy in schedule flexibility, and then
00:04:15
there's this issue of when things don't go right, whether
00:04:18
it's pay, something with a customer, not getting rides— then
00:04:22
you're really— you're talking to a robo bot.
00:04:25
And it's hard to get resolution.
00:04:27
What does it mean, then, for the types of tasks that
00:04:30
may be brought that person's way in terms of dealing with them
00:04:34
and handling them, depending on who or what is kind of managing
00:04:39
the process?
00:04:41
So the types of tasks that you're going to see
00:04:43
algorithms sort of step in and be the boss are going to be
00:04:46
sliced down to the smallest unit possible. We call that de-
00:04:52
skilling. But it's at a much deeper way than, like, factory
00:04:56
work, when you're at a assembly line. Then it's a bit of de-skilling.
00:05:00
But this is like, "Can a task be completed in two seconds?" You
00:05:03
know, a micro task. So when you think about, say, ride hailing,
00:05:07
for example, it's lots of little micro tasks. Will I accept this
00:05:10
ride or not? Am I going to follow the GPS out, Ubers or
00:05:15
Waze, to go where I'm going? Am I going to talk to the customer?
00:05:18
Which way will I drive? And then will I rate the— do I rate them
00:05:21
or not? They're all these very, very small components, but
00:05:25
because they're so small, they can be algorithmically managed,
00:05:29
and at the same time, the workers feel like they have
00:05:31
choice, because they're all these little individual
00:05:34
elements. I have a very small but very real amount of choice.
00:05:39
And I think that's one of the reasons why people like this
00:05:41
work so much, is this feeling of choice, Small but real.
00:05:45
But then you also have— and you use the term
00:05:48
in your research, the good
00:05:50
bad job. How does that come into play?
00:05:54
You know, I trust what my
00:05:56
workers tell me. You know, I didn't love driving, but a lot
00:06:00
of my drivers did like driving, and I think that was my first
00:06:04
"aha!" in the research. This is some sort of tension I need to
00:06:07
look into. So yes, the driver is telling me, "I'm earning more than
00:06:11
I was at Walmart, at the gas station. I can take care of my
00:06:14
family. You know, I like driving around town and showing people
00:06:17
the sights of my city." But then if you zoom out of the workers,
00:06:21
you gotta look at what's the larger legal, social,
00:06:25
environmental influx. These people don't have insurance
00:06:29
coverage if they get into an accident. You know. This— you
00:06:31
might get in coverage when the passenger's in the car, but what
00:06:35
happens when you're driving? You know, waiting to get that ride.
00:06:38
You're not covered in the same amount. You saw during COVID how
00:06:41
they— there were questions about whether or not they would be
00:06:43
covered to get the same sort of employment protections. There's
00:06:46
issues about not being able to earn the minimum wage. So
00:06:49
there's a broader context that you've got to understand the
00:06:52
work in, even if workers like it. And that's why I call it the
00:06:56
good bad job. And the thing is, it's here to stay, and it's not
00:06:59
just the gig economy. Most of our work is becoming both good
00:07:04
and bad, because these tensions are generative.
00:07:07
So then, when you're talking about working on
00:07:09
these types of platforms, I
00:07:10
guess you can consider it a bad job for a variety of different
00:07:14
reasons, right?
00:07:15
Yeah, there are reasons you can consider it a
00:07:17
bad job. And I think just leaving it like, "It's a bad job,
00:07:20
workers are exploited. They don't have insurance, they don't
00:07:23
have minimum wage." It's true, but it's only part of the story,
00:07:27
because people are also enjoying this work. And for those that
00:07:31
have been shut out of the labor market, particularly if you're a
00:07:33
first generation immigrant, many of the people doing this work,
00:07:36
you know, they come over to the States, and their credentials
00:07:39
are not transferring, even though they have the skills. So
00:07:41
they go into this type of work. Or there's someone that's been
00:07:44
out of the labor market. Maybe they were incarcerated, or they
00:07:46
were at home taking care of kids, or they were sick. It does
00:07:49
provide an income-earning opportunity. So the fact they
00:07:53
enjoy the work is real. In the same time, it exists in these
00:07:56
larger conditions. And I think we're finding more and more
00:07:59
jobs, particularly as benefits for workers continue to be
00:08:03
eroding, holding this tension.
00:08:06
So when you look at where we are
00:08:08
right now, in many cases, gig work is preferred to people over
00:08:14
a traditional office.
00:08:17
Ah, so that's a tricky one. So I would
00:08:20
say for my gig workers that I focused on— so I've studied all
00:08:24
the big platforms. Instacart, DoorDash, Amazon Flex, ride
00:08:29
hailing, they typically have a lot of bad options. So it's
00:08:33
warehouse, manufacturing, gas station, cater waiter. And so
00:08:38
they see gig work as being the best option out of a set of
00:08:42
good options. But these were never people that had
00:08:45
traditional office jobs. And so when you're talking about those
00:08:49
people who are preferring gig work over traditional, you know,
00:08:52
office jobs, there, you're talking about more high skilled
00:08:55
employees, or higher— you know, folks who are, like, doing Upwork,
00:08:59
or doing coding or copy editing. And that's a different
00:09:03
conversation, because you're talking about a different type
00:09:05
of labor or skill.
00:09:07
You talk in the paper about the element of
00:09:09
consent, and the fact that that can be very important in terms
00:09:13
of the perception of how good or bad a job may be. And I guess
00:09:18
you have to look at it from those two perspectives, one
00:09:21
being the human relationship, but two being the algorithmic
00:09:25
relationship as well.
00:09:26
That's it. You have to have conversations
00:09:29
with both. And particularly in this context, it's conversations
00:09:32
with the technology. But the classic question that paper
00:09:35
looks at— and this is— you know, this question has been
00:09:38
looked at over 100 years by different scholars— is, why do
00:09:41
people keep on doing jobs— apologize for my French— that are
00:09:45
kind of shitty? That are kind of bad? Why do people enjoy work
00:09:49
that qualitatively looks like it's in bad conditions? And
00:09:53
that's the issue. That's the tension of the good bad job
00:09:56
that I'm hoping to unpack. You know, and deeper in the paper
00:10:00
I talk about, people have small amounts of agency in their work.
00:10:04
So they might decline a whole bunch of rides in a row because
00:10:07
they don't want a shared ride. Because it's very— you know, you
00:10:10
can get fights with passengers. You have three or four people,
00:10:12
you know, that are in the car. Or they might use geo-spoofing
00:10:16
apps to try to get higher paid work. Or they can try to inflate
00:10:20
surges. This is one of my funnest stories. It was the
00:10:24
Thurs— no, the Wednesday before Thanksgiving. You know,
00:10:26
everybody's heading out to the airport. And I interviewed
00:10:29
somebody who primarily drove in a college city. And he's
00:10:32
like, "They weren't paying me enough to go to the airport, so
00:10:35
I just stayed in front of the dorms and I click, decline,
00:10:37
decline, decline. And then I got a ride for $160
00:10:41
to go to the airport, and it's usually 40." So there are ways— he
00:10:45
quadrupled his wage. So there are ways they're able to have small
00:10:48
amounts of agency within this larger system of work that's
00:10:52
really not set up to,
00:10:54
you know, give them any protection or benefits.
00:10:56
How do you think, then, that that technology like
00:11:00
we see used in these types of jobs potentially impacts our
00:11:04
larger workforce as we move into the future?
00:11:10
You know, the— it's a great question. And my first answer, I—
00:11:13
it's— I think it's honestly scary. You know, you think about
00:11:16
those means of recourse. You know, I didn't get paid for
00:11:18
three hours. There are people that I interviewed who got
00:11:21
kicked off the app for three days, couldn't pay a utility
00:11:25
bill, and supposedly they said they were kicked out of the app
00:11:28
because they had said something
00:11:31
they shouldn't have said to a woman. You know, there is
00:11:33
something that crossed gender norms, and then he got an
00:11:37
apology message three days later, saying, "Oh, it wasn't you.
00:11:40
The algorithmic management system made the wrong reference.
00:11:43
It was actually a different driver. You could come back on
00:11:46
the app." But for those three days, he had no income and he
00:11:49
had no way to navigate the system to get back on the app.
00:11:52
So there is a concern that as you keep on de-skilling and de-
00:11:56
splicing the work, one, it drives down wages because people
00:12:00
can't really build skill. But two, there's no one to— like,
00:12:03
algorithms make mistakes, and without a human in the loop, the
00:12:07
human is lost.
00:12:08
Is the expectation that we probably
00:12:12
still will have some of those conditions where algorithms do
00:12:16
make errors from time to time for a longer time? Because I
00:12:19
think it's— I mean, look. Humans are putting a lot of the effort
00:12:22
in behind the algorithm, and we certainly know that humans are
00:12:25
not perfect. - Yes.
00:12:26
So, I mean, how can we expect the algorithms
00:12:28
to be perfect if the humans are not?
00:12:30
It is—
00:12:32
The fact that people hold these algorithms to god-like status.
00:12:36
Like, can't make a mistake. I mean, that's such a blind, naive view
00:12:41
of technology. There's always, always going to be a gap between
00:12:46
the how the technology is designed and how it's used and
00:12:49
implemented by the workers. And in that space, you see agency,
00:12:54
like what I talked about in the paper, but you also see mistakes
00:12:57
the technical system is making. And I think the more we start—
00:13:01
get blinded by techno Utopia-ism, that increases the risk. And the
00:13:06
risk, particularly, for the most marginalized parts of our
00:13:09
society. Because these algorithms, they're refined and
00:13:13
they're tested on the most vulnerable parts of the
00:13:16
population. Like, you think about predictive policing, you think
00:13:19
about whether or not I'm going to give somebody that has a low
00:13:22
credit score a loan, or whether or not I'm going to let them go
00:13:25
out for a parole. These were tested on disenfranchised parts
00:13:29
of the population, and once they were fine, bam, they come out
00:13:32
for the masses. And so I think that's a way to think about the
00:13:35
gig economy, and why it punches above its weight class, and why
00:13:38
it's having such a ripple effect. It's— from— it started off
00:13:41
with a group of more marginalized people who are shut
00:13:44
out on the edges of the labor market. They're refining these
00:13:47
tools, and now they're going after the middle paying, the
00:13:50
higher paying, skilled jobs. And it's just changing— changing the
00:13:53
landscape of work.
00:13:55
But does the— kind of the concept of
00:13:57
innovation really have the opportunity to grow and develop,
00:14:02
because we're adding in this component of technology? I mean,
00:14:05
before, a lot of it was just innovation based on humans. Now
00:14:09
we're bringing in some other components to it.
00:14:12
Maybe, if you
00:14:13
want to be optimistic. I mean, you know, I think it's the
00:14:17
question like, has Uber done more good for the world or more
00:14:20
harm for the world? And it's hard, you know, as me, as an
00:14:22
academic, to see so— so black and white. I do think there are
00:14:26
innovative things that they've done. You know, in many ways,
00:14:29
they've dismantled a taxi medallion system that wasn't
00:14:32
working for a lot of people. And at the same time, I think the—
00:14:35
the feeling of that, what they accomplished or— and I just want
00:14:39
to— I don't want to pick on a ride hailing company. But
00:14:41
like, when you have those easy wins, it can sort of blind you
00:14:44
about the future, and then think that everything you're doing is
00:14:47
right. Like you have a mandate to go forward. And that's where
00:14:50
I get worried about the boundary of innovation. And what does it
00:14:53
mean for people and human capital?
00:14:55
Where do you think you
00:14:56
would like to take this path of research?
00:14:58
And what's that next step for you, do you think?
00:15:01
I'm doing a lot of research in the Global South
00:15:03
right now. Spent the summers in Brazil, in Nigeria, in Ghana,
00:15:09
and I think— you know, back to that earlier point where I
00:15:11
talked about how technology and these algorithmic skills are
00:15:14
sort of honed on the most disenfranchised groups. I think
00:15:18
the Global South is the future. And that—and I see it in many
00:15:21
ways in thinking about how the gig economy and algorithmic
00:15:24
management is evolving. It's— I'm seeing the big changes happen in
00:15:27
the Global South, and I see it, like, refined, when I'm looking in
00:15:30
the US. And it's easy to miss it, because it looks like noise
00:15:33
within the data. And so, you know, I'm looking at my research
00:15:36
in a more global scale.
00:15:39
I'm also thinking about, what are the boundaries of liability? Like, I
00:15:42
do not want to point my fingers at these companies and be like,
00:15:45
"You're wrong, big tech." But I think there are questions about,
00:15:49
what are the boundaries of the firm, and what responsibilities
00:15:52
do you have if you're trying to build a marketplace and if you
00:15:55
have independent contractors? We need to think about them in a
00:16:00
more thoughtful way. Because this is not Walmart, but nor is
00:16:04
it really like a bunch of, like, free floating, you know,
00:16:07
consultants, you know, that are like, meeting through job— like a
00:16:10
job board, the correct place. It's a new organizational form,
00:16:14
and it does have some—
00:16:15
some responsibilities and liabilities in play.
00:16:18
Accountability. - Yeah.
00:16:20
Lindsey, always great to talk with you.
00:16:22
Thanks very much. All the best.
00:16:23
Thank you. You too. - You got it.
00:16:25
Lindsey Cameron, Assistant Professor of Management here at
00:16:28
the Wharton School.
00:16:29
Thank you for listening to <i>The Ripple Effect</i>.
00:16:31
We hope you found this episode informative and
00:16:34
engaging. Don't forget to subscribe and leave us a review
00:16:37
so that we can continue to bring you the best insight from the
00:16:40
Wharton School.

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