Abstract:

Digital labor platforms rely on opaque algorithms—a set of rules modulated by computer programs not comprehensible to gig workers—to direct, evaluate, and discipline large groups of freelance workers in an automated way. Despite the accumulating evidence substantiating the benefits of algorithmic transparency and gig worker autonomy, it is not clear whether eliminating all algorithmic opacity in digital labor platforms may also create unintended costs for gig workers. We argue that some degree of control by platforms—even though it is achieved via opaque algorithms—could essentially diminish the costs of using the price mechanism of the market by absorbing part of the market uncertainties, hence, the precariousness of work, and provide gig workers with a degree of stability (e.g., guaranteed ongoing work) that fosters engagement and satisfaction. The findings from an inductive case study of Spain’s leading on-demand delivery platform’s (Glovo) response to a groundbreaking change in law (Rider Law)—that required full algorithmic transparency and full worker autonomy in Spain—reveal that removing the black box of algorithmic opacity resulted in frustration, dissatisfaction, and disengagement among now-fully-autonomous workers. This study contributes to our understanding of the tension between control and autonomy in organizations by highlighting the need for a fresh appraisal of benefits and costs of worker autonomy in digital labor markets.

General information:

Attendance to this seminar is possible by invitation only. Please send an e-mail to secbs-abs@uva.nl if your are interested in attending this seminar.