The Test Flashcards
Explain how data in Extract A shows that the incentive for workers to become self employed increased between 2009/10 and 2018/19
- increases in relative wages will improve the incentive for workers to become self-employed
- between 2009/10 and 2018/19, median wages fell for employed workers from £21 900 to £21 600, a decrease of £300 or 1.4%
between 2009/10 and 2018/19, median wages rose for self-employed workers from £15 800 to £16 500, an increase of £700 or 4.4%
median wages of employees peaked in the first year shown, 2009/10 at £21 900, whereas median wages of self-employed workers peaked later, in 2017/18 at £17 600.
the relative wage premium received by employed workers compared with self-employed workers was 38.6% in 2009/10, but only 30.9% in 2018/19.
With help of a diagram analyse how a trade Union might achieve higher pay for it’s members
Labour market diagram with trade union having higher wages
- definitions of trade union and pay
- explanation of the diagram, showing impact of higher wage and comparison with non-unionised wages.
- how a union may engage in collective bargaining for the benefit of its members
- explanation of types of actions taken by unions, such as strikes, work-to-rule, litigation, media campaigning, and how they can lead to higher negotiated pay settlements
- how a union may act as a monopoly supplier, or at least have some degree of monopoly power in the labour market
- use of extracts (particularly Extract C) in explaining how unions have acted to protect the interests of workers and secured higher pay.
What the definition of a trade Union
A group of workers who join together to maintain and improve their conditions of employment, including their pay
What is collective bargaining
The process by which wage rates and other conditions of work are negotiated and agreed upon by a union or unions with an employer or employers
Assess the view that government intervention in the UK labour market is necessary to protect the interests of people who are working in a gig economy
What is the gig economy
What is the difference between the gig economy and standard employment
What is meant by the interests of people working in the gig economy
What are the benefits of the gig economy to the individual
What are the costs
Why are wages and working conditions lower in a gig economy
Benefits and costs of gig economy to firms and the wider economy
Pandemic
What is the gig economy
The gig economy refers to a labor market characterised by temporary or freelance work, where individuals are hired on a short-term basis to complete specific tasks or projects
What is the difference between the gig economy and standard employment
The gig economy is fueled by emerging trends such as technological progress and online commerce. Provides flexibility to switch between jobs
Gig economy workers often lack essential employment protections and benefits, including pensions, health insurance, and maternity benefits. They are also more likely to experience lower pay compared to their counterparts in formal employment.
What is meant by the interests of people working in the gig economy
The interests of gig economy workers refer to their well-being, job security, fair wages, and access to benefits. Government intervention is necessary to safeguard these interests and ensure that workers in the gig economy are not exploited or subjected to unfair treatment.
What are the benefits of the gig economy to the individual
flexible working hours that can be adjusted to accommodate personal commitments.
Gig workers can choose the jobs they want to undertake and have the freedom to work for multiple employers simultaneously.
The absence of a supervising manager provides a level of autonomy and independence, which some individuals find appealing.
What are the costs of the gig economy to the individual
Workers in this sector often face lower pay compared to traditional employment, as gig platforms compete on cost and often drive down wages.
Additionally, gig workers lack access to non-wage benefits like pensions, health insurance, and maternity benefits, which can create financial insecurity and limit their long-term prospects.
Why are wages and working conditions lower in a gig economy
Gig platforms operate on a competitive basis, which puts downward pressure on wages as workers compete for jobs.
the classification of gig workers as self-employed or independent contractors allows employers to avoid providing minimum wage guarantees and other employment benefits.
The absence of collective bargaining power and the individualised nature of gig work contribute to poor working conditions.
Benefits and costs of gig economy to firms and the wider economy
For firms, it provides greater labor mobility, enabling them to flexibly adjust their workforce according to demand fluctuations.
The lower costs associated with employing gig workers can also lead to increased profitability.
In terms of the wider economy, the gig economy promotes economic efficiency by utilising available labor resources more effectively.
Impact of the pandemic on the gig economy
While some sectors, such as food delivery, experienced increased demand, others, like ride-sharing, saw a sharp decline.
Many gig workers faced income insecurity and increased health risks due to the nature of their work, which often involved direct interaction with customers.
The pandemic highlighted the vulnerabilities of gig economy workers and the need for enhanced protection measures.
What are possible policies for government intervention in the gig economy
Legislation can be enacted to redefine gig economy workers as “employed” rather than “self-employed,” ensuring they receive the same employment rights and benefits as traditional employees.
Increasing the minimum wage and guaranteeing minimum hours for all roles can also help improve the economic conditions for gig workers.
What are market and government failure arguments in the gig economy .
The need for government intervention in the gig economy arises from market failures, such as the lack of bargaining power and information asymmetry between gig workers and platform companies.
These market failures lead to suboptimal outcomes for workers.
However, it is crucial to acknowledge potential government failures, such as unintended consequences of regulations or excessive bureaucratic burden. Careful policy design and continuous evaluation are necessary to strike a balance.
