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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 Wharton, discussing gig work, algorithmic management, and the concept of the "good bad job." Key topics include the relationship between workers and algorithms, the gig economy's impact on traditional employment, and the challenges faced by gig workers.

Lindsey shares her research on how gig workers, such as Uber drivers, experience both flexibility and challenges in their roles. She highlights the tension between enjoying the work and facing issues like lack of insurance and algorithmic management.

The conversation also addresses the broader implications of algorithmic management on the workforce, including potential de-skilling and the need for human oversight. Lindsey emphasizes the importance of understanding the nuances of gig work and its effects on workers' lives.

As Lindsey looks to the future of her research, she focuses on the Global South and the evolving landscape of gig work and technology. She raises questions about the responsibilities of companies in managing independent contractors and the need for accountability in this new organizational form.

The episode concludes with a call to consider the complexities of gig work and the ongoing changes in the labor market.

TLDR

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

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Episode Highlights

  • Gig Economy's Impact
    The gig economy is a microcosm reflecting broader economic changes.
    “The gig economy punches above its weight class.”
    @ 01m 41s
    February 25, 2025
  • The Good Bad Job
    Exploring the dual nature of gig work, where workers find joy despite challenges.
    “It's a good bad job.”
    @ 06m 56s
    February 25, 2025
  • Algorithmic Management Risks
    Discussing the dangers of relying solely on algorithms for management.
    “Algorithms make mistakes, and without a human in the loop, the human is lost.”
    @ 12m 07s
    February 25, 2025

Episode Quotes

  • I trust what my workers tell me.
    Pros & Cons of Gig Work & Algorithms Managing Employees
  • The gig economy punches above its weight class.
    Pros & Cons of Gig Work & Algorithms Managing Employees
  • It's a good bad job.
    Pros & Cons of Gig Work & Algorithms Managing Employees
  • Why do people enjoy work that looks like it's in bad conditions?
    Pros & Cons of Gig Work & Algorithms Managing Employees
  • Algorithms make mistakes, and without a human in the loop, the human is lost.
    Pros & Cons of Gig Work & Algorithms Managing Employees

Key Moments

  • Trust in Workers00:09
  • Gig Economy Insights01:41
  • Good Bad Job06:56
  • Algorithmic Management12:07
  • Future of Work15:18

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