1.3a Social Structure

Social Structure

Social structure consists of patterned interactions that connect people with groups. These interactions endure and shape behavior and attitudes (see Chapter 3). A social structure is a framework that provides the expectations for behaving and thinking (Merton, 1938). This framework includes formal rules, like laws. But also, it includes general norms, like saying thank you when someone provides help.

Social Institutions

A social structure is made up of social institutions. Social institutions consist of groups and organizations that meet social needs and regulate norms. The economy is a social institution. It provides the framework for the exchange of goods and services. For instance, work provides people with jobs and income. People hold specific roles in the economy as employees, employers, or customers. These roles have expectations linked with them. Employers provide jobs and income to their employees. In exchange, employees do the day-to-day tasks to support the organization’s mission. Customers buy goods and services, adding revenue to business organizations.

High-tech innovations have long changed work. For instance, computers, high-speed Internet, and video conferencing have expanded remote work. Remote work makes it easier for people to access social goods like healthcare that might not be available nearby. However, high-tech innovations can have adverse effects. For example, technology may replace workers leading to unemployment.

The Gig Economy

The gig economy is a new form of work and shopping. It grew due to smartphones and apps. The gig economy is a system that offers short-term freelance work (self-employment). Sixteen percent of U.S. adults have worked for gig economy company like Uber, Door Dash, or Airbnb. About a third (31%) use gig work as their main job (see Figure 1.2) (Anderson et al., 2021). Gig economy workers are not employees of these companies. Instead, they are independent contractors. As such, they are not eligible to benefits like paid time off, sick leave, or workplace protections required by law.

Gig economy companies promote themselves as solving several problems. First, people with an empty room can rent it and earn money, such as through Airbnb. Second, workers can  choose their hours and work as much as they want. However, these companies also have changed  a lot over the years. Workers share that these companies no longer give them the freedom to choose or refuse assignments (Ravenelle, 2019). Agency is having the freedom to make choices. People can decide how to act and think, but their choices are limited. If gig companies reduce job offers when the worker declines some jobs, the company has limited the worker’s agency.

Photo 1.7

Gig Economy Workers Delivering Food

Ravenelle (2019) interviewed 80 gig economy workers to understand this work and how gig companies use algorithms. An algorithm is a set of rules using mathematics and computer software computations. Gig workers do not know how these algorithms make decisions. For example, Uber uses an algorithm to determine “upfront pricing” to tell customers the cost of their ride (Dubal, 2023). Gig companies use these algorithms to offer different wages to different workers for the same task. As working conditions become worse, workers are not able to just quit. They cannot just walk away because they have invested money in their rentals (Airbnb) or cars (Uber) to do this work. Ravenelle (2019) found that gig economy workers felt stuck.

The emergence of the gig economy shows how work can change due to technological innovations. The gig economy makes it easier to shop and promises flexible work schedules. However, it also potentially traps workers.