Is technology eating the temporary staffing industry? An analysis of Upwork

The rise of web-based work platforms such as Uber has sparked speculation about the potential of these platforms to revolutionize the labor market. This speculation has rarely been accompanied by a data-based explanation of the competitive advantages of web-based work platforms or the mechanisms by which they may impact the labor market. We sought to provide such an explanation by comparing a web-based work platform, Upwork, to the traditional labor market intermediary it best resembles, a temporary staffing agency. We hypothesized that the two would be different and chose to compare them based on three characteristics: composition, wages and revenue, and efficiency. Using data collected from Upwork’s website and the Bureau of Labor Statistics, we found significant differences in all three characteristics. We analyzed the differences we found for evidence that they provided Upwork with a competitive advantage over traditional temporary staffing agencies. We also asked whether the differences we found indicated how web-based work platforms might impact the labor market as a whole. We concluded that Upwork in its current form is more of an expansion of the temporary staffing industry than a revolutionary force because it allows workers and clients to make contracts that cannot efficiently be made elsewhere. We also suggested avenues for further research.

Name thesis:degree_name

M.H.R.I.R.

Level thesis:degree_level

Thesis

Discipline thesis:degree_discipline

Human Res & Industrial Rels

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2017

Author dc:creator

• Brumm, Francesca

Contributors dc:contributor

• Weaver, Andrew

• Labor
• Gig economy
• Web platform
• Work
• Upwork
• Online work
• Alternative work

Statement dc:rights

• Copyright 2017 Francesca Brumm

Language dc:language

en

Handle dc:identifier

http://hdl.handle.net/2142/97477

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/97477