Firm Structure and Division of Labor Under the Background of Gig Economy

Luning Dong and Guoqiang Li ()
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Luning Dong: Faculty of Business Administration, University of Macau
Guoqiang Li: Faculty of Business Administration, University of Macau

No 202645, Working Papers from University of Macau, Faculty of Business Administration

Abstract: In the context of the development of the digital economy, this paper introduces the factor of gig economy, tests a series of new firm structures, and uses inframarginal analysis to systematically explain how to transition from autarky and non-firm structure to firm structure. We focus on discussing the conditions for the emergence of firm structure, the expansion and contraction of firms, and the issue of the ownership. We shows the important role that transaction efficiency plays in the change of firm structure. The markets for different types of labor are introduced and therefore the size of the firm is endogenously determined. decisions.

Keywords: Digital economy; Gig economy; Firm structure; Inframarginal analysis; Transaction efficiency; Emergence of the firm (search for similar items in EconPapers)
JEL-codes: B21 D23 L22 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2026-09
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Published in UM-FBA Working Paper Series

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