Inequality, Social Mobility and the New Economy: Introduction

The world of work is changing in ways that were not anticipated at the start of the century. Technology, globalisation and the creation of new business models based on digital platforms are creating new types of jobs, contracting arrangements and transactions. As Diane Coyle describes in her paper on work in the digital economy, temporary and flexible contracts are proliferating, with an estimated 905,000 people on ‘zero hours’, 29 per cent higher than in 2014. While remote working has been common in sectors such as IT for some time, the workplace itself has transformed for many and is in some cases virtual rather than physical. These changes offer opportunities for some, including those who are excluded from traditional work modes, and challenges for others. Platform models such as the on-line marketplace Etsy may facilitate access to the formal labour market for the economically inactive or long-term unemployed but offer little social protection. Regardless of the outcome of current legal disputes over the employment status of ‘employees’ or ‘service providers’ in the ‘gig’ economy, because of difficulties in enforcement, these new forms of work carry a strong potential to exacerbate inequalities in the labour market which are apparent in disparities by social class, ethnicity and gender.