Should We Treat Data as Labor? Moving Beyond “Free”

Author:

Arrieta-Ibarra Imanol1,Goff Leonard2,Jiménez-Hernández Diego3,Lanier Jaron4,Weyl E. Glen5

Affiliation:

1. Department of Management Science and Engineering, School of Engineering, Stanford University, Huang Engineering Center, 475 Via Ortega Avenue, Stanford, CA 94305 (email: )

2. Department of Economics, Columbia University, 1022 International Affairs Building, 420 West 118th Street, New York, NY 10027 (email: )

3. Department of Economics, Stanford University, 579 Serra Mall, Stanford, CA 94305 (email: )

4. Office of the Chief Technology Officer, Microsoft Corporation, One Microsoft Way, Redmond, WA 98052 (email: )

5. Microsoft Research, One Memorial Drive, Cambridge, MA 02142 and Yale University Department of Economics and Law School (email: )

Abstract

In the digital economy, user data is typically treated as capital created by corporations observing willing individuals. This neglects users' roles in creating data, reducing incentives for users, distributing the gains from the data economy unequally, and stoking fears of automation. Instead, treating data (at least partially) as labor could help resolve these issues and restore a functioning market for user contributions, but may run against the near-term interests of dominant data monopsonists who have benefited from data being treated as “free.” Countervailing power, in the form of competition, a data labor movement, and/or thoughtful regulation could help restore balance.

Publisher

American Economic Association

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