Remote working positions are undoubtedly in high demand, but this way of operating also has its fair share of challenges.
One such issue is the increase of competition that can lead to a spike in inequality.
In fact, a 1981 paper from Sherwin Rosen titled “The Economics of Superstars,” showed how technology allowed people in the entertainment industry with specialized skills to easily reach a vast market, meaning less labor was required.
Rosen added that with time, this would impact other professions as well. And the pandemic has proven this correct.
For instance, while a teacher’s income once depended on how many students they had in a classroom, platforms such as Udemy have allowed teachers like Chris Haroun to make millions from his courses.
Additionally, Scott Galloway, a professor at NYU’s Stern School of Business, was asked to increase his class size from 160 to 280 students once classes went remote.
“That’s 120 fewer seats for the other marketing professors to fight over,” said Galloway.
This is also being seen in industries that were once thought to require an in-person presence, such as the fitness world.
Companies like Peloton benefited greatly from the pandemic, with its membership growing to about four million by the end of last year. While this is equal to the number of gym patrons in New York State, the difference between Peloton and an on-site gym is that the latter requires 86,000 employees in one state and the former has several dozen instructors that live wherever they please.