Who wins and who loses when companies can hire from anywhere?
Some employees and freelancers who can work remotely will have vastly expanded opportunities and the possibility of significant increases in pay, but remote workers in general figure to face more competition.
One thing that seems unavoidable, research suggests, is an intensification of inequality.
A 1981 paper, “The Economics of Superstars,” described the impact of recording and broadcasting on the incomes of athletes and entertainers. As technology enabled individuals with specialized skills to reach a giant market, fewer stars captured more of the rewards.
Over time, the paper posited, many other professions would follow a similar pattern. A teacher’s income, for example, was traditionally limited by the number of students who could fit into one classroom.
But today on Udemy, an online learning platform, teachers like Chris Haroun have earned millions from courses they created, especially after Covid-19 lockdown pushed enrollments up. The vast majority of teachers on Udemy don’t come close to Mr. Haroun’s earnings, however.