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Factors of development of the market of freelance in information economy


Tagarov B.Zh.
(about the author)

Tagarov Bato Zhargalovich – (Baikal State University)

Published in:
Creative Economy
– Volume 12, Number 10 (October 2018)

JEL classification: J44, J46, L86

Keywords: distant work, freelance, information economy, information technologies, internet, labor market


Citation:
Tagarov B.Zh. (2018). Factors of development of the market of freelance in information economy. Creative Economy, 12(10), 1703-1714. doi: 10.18334/ce.12.10.39450


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Abstract:

The present article focuses on the analysis of factors contributing the growth of the freelance market. The author analyzes the approaches to the definition of "freelance". The aspects of the information economy that cause the growth in the freelance industry, in particular, the development of information technology and labour intellectualization are studied. Forces of supply and demand for freelancers' services have been considered separately. According to the author, the forces of demand are the company's desire to business process out-sourcing, cost savings, the desire to become independent in the local labor market. The growth of population mobility, the desire to avoid discrimination, autonomy from the formal education, the growth in access to knowledge, wealth inequality are considered as forces of supply in the freelance market.


Highlights:

• The special features of freelance activities are its autonomy, high skill level and its intellectual content.
• The freelance growth in the contemporary economy is due to three groups of forces: the emergence of information economy forces, forces of demand for freelancers' services, forces of supply.
• The drop in the cost of transmitting information has led to an increase in remote working. The number of internet users in 2017 reached 4,157 million.
• The development of information technology and the growth of the science-intensive sector of the economy has led to increasing demand for intellectual work that does not depend on the geographic location of the employee and the employer.
• Forces of demand for freelancers' services: companies switching over to outsourced services, project works growth, a high level of motivation of freelancers, the entrepreneur's desire to become independent in the local labour market, the cost cutout possibility.
• Forces of freelancer services supply: population mobility growth, increase in the quality of life, specialist's desire not to depend on their outward appearances (education, gender, age, etc.), shortage of jobs and wealth inequality.
• Persons who do not have access to the traditional labour market are an important source of an inflow of new expertise to the freelance market: students, women on maternity leave, the elderly, the disabled, etc.
• Due to anonymity of providing online services in the freelance market, the employer, when choosing a specialist, is guided only by his/her competency, which means no discrimination.








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