[HN Gopher] Algorithmic Wage Discrimination (2023)
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       Algorithmic Wage Discrimination (2023)
        
       Author : tacon
       Score  : 128 points
       Date   : 2024-09-11 17:20 UTC (5 hours ago)
        
 (HTM) web link (columbialawreview.org)
 (TXT) w3m dump (columbialawreview.org)
        
       | WalterBright wrote:
       | I.e. workers who produce more get paid more, those who produce
       | less get paid less. It's always been that way, though it is
       | usually difficult to measure accurately.
        
         | uoaei wrote:
         | Technically true, while ignoring all details of how
         | "productivity" is defined. Claiming it's an issue of
         | measurement and not definition implies you believe there's some
         | ironclad and universally applicable definition of productivity,
         | i.e., once again imposing your own ideology without any good
         | faith efforts to include other perspectives.
        
           | WalterBright wrote:
           | > Technically true, while ignoring all details of how
           | "productivity" is defined.
           | 
           | There's a specialty profession called "cost accounting" whose
           | sole purpose is to accurately define it. Just like insurance
           | companies do risk assessments.
           | 
           | > implies you believe
           | 
           | You're just making things up.
           | 
           | > without any good faith efforts
           | 
           | Give the rudeness a rest.
        
             | myhf wrote:
             | It's dishonest to say in one comment that certain workers
             | "produce more" and in the next that you are speaking in
             | terms of "cost accounting" productivity (that is,
             | identifying which workers are likely to accept less pay for
             | the same task).
        
             | uoaei wrote:
             | There's a specialty profession which merely adopts as fact
             | definitions of productivity and optimizes costs against
             | that. Give the denseness a rest.
        
         | vundercind wrote:
         | This introduction appears to describe a lot more going on than
         | that.
        
         | Etheryte wrote:
         | This isn't even remotely what the article is about, please try
         | and have at least a cursory read of the content you're
         | commenting on.
        
       | DeliriousDog wrote:
       | There was a (now deleted comment) about how there is no proof of
       | wage discrimination for Uber/Lyft drivers, which was posted with
       | no evidence.
       | 
       | This video (https://www.youtube.com/watch?v=OEXJmNj6SPk) was
       | recently published which shows drivers being offered the same
       | gigs, but different payment amounts. Note that I could not find a
       | published version of the data they collected in this video.
       | 
       | That is not explicitly proof of wrongdoing, but clearly
       | algorithmic price setting can be demonstrated as not always
       | offering the same payment to the same drivers for the same work.
       | There may be a valid reason to why this is the case, but as the
       | calculation method is closed source, the individuals being
       | offered the wage are unaware of why they would be paid less than
       | their peers.
       | 
       | This is work that is often considered "low skill" - which should
       | actually make it extremely cut and dry as to why an individual
       | would be paid more or less. Are they making their pickups faster?
       | Are their customers more satisfied? If that's the case, why would
       | they sometimes be offered more money than their peers and
       | sometimes less money?
       | 
       | Almost all workers here are price takers, and suffer greatly from
       | the information asymmetry present. Companies hiding behind "oh
       | but the algorithm says..." is a poor excuse for inequality.
       | 
       | Edit: Because discrimination is in the title of the OP, I feel
       | the need to clarify: in no way is the above saying that the video
       | posted is proof of discrimination. Inequality need not be
       | discrimination. When there is inequality without any measurable
       | source, we need to be skeptical of the reason. Maybe one driver
       | has better customer feedback, therefore they get offered a higher
       | wage. There are many logical explanations for the result, but
       | Uber/Lyft do not seem to engage with the discussion. This should
       | raise red flags. That does not conclude that they are
       | discriminating against anyone, and that would be a poor
       | conclusion to draw without a true investigation.
        
         | mananaysiempre wrote:
         | Not deleted, just (formerly?) flagged to death by other users:
         | https://news.ycombinator.com/item?id=41513943. (The HN software
         | seems to kill newer users' comments more readily, is my
         | impression.) You can enable "showdead" on your profile page if
         | you want to see such comments.
        
           | madars wrote:
           | showdead is essential for Orange Reddit but it will show
           | downvoted comments in unreadable light grey on light grey. So
           | you probably want a user CSS (e.g., with Stylus) like this
           | (italic and the particular color are to taste, of course):
           | .c5a, .c73, .c82, .c88, .c9c, .cae, .cbe, .cce, .cdd { color:
           | #222; font-style: italic; }
        
           | DeliriousDog wrote:
           | Thank you! Reading that comment was actually what prompted me
           | to make an account just to reply that, and then when I did it
           | was gone.
        
         | SkyBelow wrote:
         | I could see an AI trying to hunt out a person's bottom line. I
         | could offer this job for $10 to everyone, but maybe I'll
         | subtract 0 to 4 dollars when I offer it and see who does or
         | doesn't bite. If someone bites on lower pay, I then record that
         | information and offer them further lower pay in the future.
         | 
         | This isn't really abnormal. Every job does this by setting a
         | wage they are willing to pay and seeing who signs up, knowing
         | that person will now need to only be paid that wage. What is
         | different is the scale and the frequency this is being done.
         | Instead of doing this in a way that impacts a person once every
         | job change, it now impacts them multiple times a day, and the
         | data recorded is more detailed and can be acted on more
         | directly.
         | 
         | None of this is discrimination against a protected class, but
         | if there are any reasons one demographic might, on average,
         | accept lower pay than another, it will lead to large scale
         | discrimination.
         | 
         | The problem is that our common discussion on these topics is
         | lacking the rigor, nuance, or depth to handle questions about
         | this, and thus ends up with two large camps. One that looks at
         | the methods, sees no obvious discrimination in the methods, and
         | say it doesn't count as inequality. The other that looks at the
         | outcomes, notices the clear difference in outcome this leads
         | to, and calls it inequality. Both are, by their own metrics,
         | correct.
        
           | mananaysiempre wrote:
           | "Price discrimination" (or in this case "wage
           | discrimination") as described in microeconomics is exactly
           | this--the same seller/buyer demanding/offering different
           | prices for the same goods depending on their idea of how much
           | the buyer/seller will bear. The term has nothing to do except
           | etymology with what sociologists, lawyers, or politicians
           | mean by the word "discrimination" (not that those three
           | groups mean the same thing by it).
        
             | SkyBelow wrote:
             | The issue is that many small scale price discriminations on
             | individually reasonable criteria might present itself as a
             | large scale discrimination of the type that lawmakers and
             | others do care about. The way terms are overloaded does no
             | favors, but even if we updated the terminology to resolve
             | this, I think the underlying issue will remain.
             | 
             | Pink tax is an example of this happening, though on a scale
             | needing far invasive technology than is currently
             | available. It is presented as (big) discrimination even
             | though it happens as price discrimination.
        
               | vundercind wrote:
               | It's more than that, I think: if this paper holds up (or
               | if it doesn't, _but_ the ideas it covers are valid and
               | the practices it's concerned with _later_ come into
               | being) then it's describing a mechanism for pushing down
               | worker wages _at the individual level, and within
               | potentially any or all bands of the economy_ toward the
               | market-clearing rate _per worker_. A market of many
               | workers becomes many markets of one worker.
               | 
               | This is, um, potentially _really bad_. It's several
               | effects that already happen in, if you will, _chunkier_
               | ways in our economy (especially in the US, with weak or
               | absent unions and poor labor protection laws, compared to
               | many other developed states) becoming applied at a much
               | finer level of resolution (so to speak).
        
           | Kon-Peki wrote:
           | Stay tuned for my new app: Wildcatr
           | 
           | It is installed on gig worker phones and monitors the offered
           | rates. When one worker is offered abusive rates, all other
           | workers have their future offers filtered from view for some
           | period of time unless it exceeds the typical offer by more
           | than the amount the abused worker missed out on.
        
           | DeliriousDog wrote:
           | The issue isn't the "hunt for the bottom line" but the fact
           | that simultaneously multiple parties are offered different
           | price points for an unknown reason (to the workers).
           | 
           | You say it's not discrimination, but you cannot definitively
           | make that claim. That's the issue. Red lining isn't
           | immediately discrimination against a protected class, but
           | silently is it. This is not to say that Uber/Lyft are
           | discriminating against a protected class - it's just that
           | because of the lack of transparency we don't know that they
           | are not.
           | 
           | This is a hard thing for people to accept, but we need to
           | take a deep look at how we implement ML to classify things
           | tied to individuals. It's very easy to de-humanize the humans
           | affected by the systems we build, because "it's just an
           | algorithm."
        
             | Aloisius wrote:
             | _> it 's just that because of the lack of transparency we
             | don't know that they are not._
             | 
             | Is this not the case regardless of whether an algorithm is
             | used or not?
        
           | marcosdumay wrote:
           | Setting labor price by exchange-like auction is an abusive
           | practice in any context.
           | 
           | Companies get a pass on job interviews because it's basically
           | impossible to prove. But this doesn't make it ok, it just
           | makes it less damaging than the remedy. (Or at least
           | arguably, a lot of people do argue otherwise, and lots of
           | people are looking for better remedies.)
        
         | TJSomething wrote:
         | My immediate thought is that it would probably get better
         | results of they intentionally set pay based on social media
         | predictors of wage sensitivity. I expect that you could that
         | there are fingerprints of wage sensitivity. And that could
         | amount to what's basically predictive union breaking via wage
         | increase.
        
       | itake wrote:
       | Typically, workers are paid a flat rate, businesses buffer the
       | worker's income generating activities, such that the business
       | owners pocket high income activities (like serving drinks and
       | being tipped) with low income activities (like washing the dishes
       | at the end of the night). Any money left over after wages, is
       | pocketed by the business owner, to be used on a day with low
       | income day (think Friday night vs Sunday night at a restaurant).
       | 
       | Dynamic pricing allows workers more exposure to the value they
       | generate, thus enabling them to capture higher pay.
        
         | vundercind wrote:
         | That might be what dynamic labor pricing implemented by a
         | disinterested third party would do. An interested party can use
         | it to do other things.
        
           | itake wrote:
           | What other things?
           | 
           | For decades, restaurants have paid their labor with dynamic
           | "algorithmic" wages: work during peak shifts, get more tips.
           | 
           | Why haven't people been up in arms about how bar tenders
           | working a Friday night near more than bartenders working a
           | Monday afternoon?
        
             | vundercind wrote:
             | The article is about subjecting workers to discriminated
             | pay rates for reasons: that _are not_ clear to the workers;
             | that may not be within the power of the workers to control;
             | that cannot be predicted in advance; and that may vary _per
             | worker_ rather than being offered the same to all workers
             | at once; with that last _also_ based on factors unknown to
             | the workers--including, potentially, personal information
             | about the worker or about their compensation history.
             | 
             | The paper is explicitly not (as in: the intro outright
             | states this is not what it's about) traditional forms of
             | variable pay.
        
               | itake wrote:
               | > that are not clear to the workers; that may not be
               | within the power of the workers to control; that cannot
               | be predicted in advance; and that may vary per worker
               | rather than being offered the same to all workers at
               | once;
               | 
               | You're literally describing tipping. When a worker starts
               | their shift, they do not know how much they will earn.
               | Tips vary per worker for sexism, racism, ageism reasons,
               | or just plain luck.
        
               | vundercind wrote:
               | That is similar! But this is the employer doing it, not a
               | bunch of uncoordinated people.
        
               | itake wrote:
               | If 5 "employers" per day opaquely compensate an employee,
               | then that's ok.
               | 
               | But if 1 employer, chooses their wage opaquely, then
               | that's bad.
               | 
               | I don't get it.
        
               | vundercind wrote:
               | The paper explains this (and isn't about quite what
               | you're suggesting). Tens of pages of explanation, it
               | covers it better than I will.
        
               | yulker wrote:
               | Most restaurants in the world operate without tips.
        
               | mewpmewp2 wrote:
               | But usually these things come down to patterns that
               | people will learn. E.g. they will learn certain location
               | at certain hours will pay more, because there's more
               | demand vs supply, so they will adapt. It allows them the
               | power to decide when and for what money it is worth it
               | for them to work those hours or this location.
        
               | vundercind wrote:
               | Those parts, maybe.
               | 
               | Will you know they're offing you and Bill the exact same
               | job at the same time, and are willing to pay whichever of
               | you takes it first, but Bill's offer is 20% higher? Or
               | when they've made you a lower-than-usual offer to test if
               | they can start offering you lower rates in the future
               | (but you did just get a past-due notice on your kid's
               | hospital bill...)?
        
               | itake wrote:
               | > Will you know they're offing you and Bill the exact
               | same job at the same time, and are willing to pay
               | whichever of you takes it first, but Bill's offer is 20%
               | higher?
               | 
               | Is this any different from than any job ever? More
               | experience airline pilots are paid more than the less
               | experienced for the exact same route.
               | 
               | Two new grads from the same school may get different
               | offers depending on how well they interviewed for the
               | same role.
               | 
               | Where is the problem?
        
             | DylanDmitri wrote:
             | Wait staff paid directly by customers is different from
             | payments processed opaquely by the employer. Consider if a
             | server got paid tips based only on the number of customer
             | smiles detected by the restaurant security cameras.
        
               | itake wrote:
               | Tip amounts have always been about how much the customer
               | enjoyed the service, hence the 10-25% tip ranges.
               | 
               | Customers have opaque expectations for service and pay
               | their server based on the server's gender, race, and age
               | as well as quality of service that the server doesn't
               | even have control over (like if the kitchen was backed
               | up).
               | 
               | A system counting smiles is basically what we currently
               | have: instead of signaling with a smile, they signal with
               | a tip amount.
        
               | freejazz wrote:
               | Why are you obtusely re-contextualizing everyone's
               | responses?
        
               | AStonesThrow wrote:
               | Not anymore.
               | 
               | Now there is pre-tipping, tipping for no discernible
               | service, fake tip jars in places that aren't licensed for
               | it, etc.
               | 
               | More people are becoming aware that, in the US anyway,
               | the wage is reduced commensurate with expected tips, and
               | so customers are more or less obligated to supplement
               | wages, and avoid offending servers, unless we don't want
               | to be served at all.
        
         | darby_nine wrote:
         | > Dynamic pricing allows workers more exposure to the value
         | they generate
         | 
         | Now we just need to get this to work with respect to investors
         | generating real value and not just profit and capitalism might
         | actually be cooking something
        
         | financetechbro wrote:
         | Your perspective of dynamic pricing is true, _if_ the workers
         | owned the platform(s). But they don't. So your assumption that
         | dynamic pricing allows workers more exposure to the value they
         | generate falls flat on its face when there are uber drivers
         | making less than they've ever made while uber itself is turning
         | into a profitable company
        
           | itake wrote:
           | i'm still confused what people are proposing is the solution.
           | 
           | Uber pays a flat hourly rate no matter when the driver works?
           | Drivers working after a football match earned the same pay as
           | drivers working at 4am?
           | 
           | I think this would mean that the drivers that work during
           | peak hours Less than they do now and drivers working during
           | low traffic hours would earn more?
        
         | UncleMeat wrote:
         | But corporations have access to way more power and data. You
         | aren't going to get to see into the wage algorithm. Quitting
         | because you are unhappy with the wage algorithm means time
         | without pay and potentially having to move in order to get a
         | new job. A corporation, meanwhile, suffers very little when one
         | of its employees quits.
         | 
         | I can't possibly imagine how this ends up producing increased
         | average or median wages for workers.
        
           | itake wrote:
           | N passengers need rides after a concert, but there Y drivers.
           | 
           | How do you fairly compensate the drivers without dynamic
           | compensation, while keeping the price low for the passengers?
        
       | vundercind wrote:
       | The reaction here has been interesting. As someone with a heavier
       | social-science and politics background than most HNers, I started
       | reading the introduction before there were any comments here and
       | went "oh my god, of course this is a thing, why did it never
       | occur to me both that this would/is happen/happening, and to put
       | it in these terms", and my mind started chasing down the
       | mechanisms by which it must work. _Bombshell_ is a word that came
       | to mind as soon as it dawned on me what the paper's getting at.
       | 
       | Then I came back to this thread and had a similar experience to
       | when I checked on the Internet's reaction to The Last Jedi after
       | I got out of the theater, and was surprised to find that my
       | experience of it as the only almost-actually-good SW film since
       | the original trilogy was, um, _not what most others_ had taken
       | away.
        
         | Etheryte wrote:
         | It's always useful to keep in mind the wide variety of HN
         | users. For certain cohorts, the likes of Peter Thiel, Elon Musk
         | and such are considered the pinnacle of their aspirations, and
         | abusing workers is viewed as business smarts.
        
           | szundi wrote:
           | Who goes to work for Elon cannot really be so-called abused -
           | already knew what is coming when applied
        
           | vundercind wrote:
           | I think one thing going on is that the form of argument is
           | unfamiliar to a lot of readers. Many seem to have taken away
           | that the paper's about the concerns the "Blueprint" it
           | mentions sets out to address, or about traditional bonus
           | structures or variable or productivity-based pay, because the
           | intro covers both of those things in some detail--rather, the
           | paper is laying those out as background. The paper is _not
           | about those_.
           | 
           | This is a common form for papers and arguments in the social
           | sciences, but maybe a lot of HNers aren't used to it.
           | 
           | [edit] to be clear, the paper lays out plainly that this is
           | the case, and a person unfamiliar with this way of writing
           | could figure it out from the text _per se_ , but if one is
           | not looking out for this kind of structure I can see how one
           | might overlook the parts where it straight-up says "that's
           | not what this is about: _here_ is what this is about"
        
         | tbrownaw wrote:
         | So, what _is_ it getting at that 's not obvious until it's
         | pointed out and you haven't run across before (and how is that
         | related to having a social-sciences background)?
         | 
         | Before app work, unpredictable schedules were a problem for
         | people juggling multiple part-time jobs. Presumably they still
         | are and the news just has a new shiny to play with.
         | 
         | Paying people more to cover undesirable shifts means that
         | people with more flexibility or who choose to make more
         | personal sacrifices will get paid more. I remember something
         | about... pharmacists I think it was? and how these factors
         | lined up with some of the traditional "group X gets paid more
         | than group Y" groupings.
         | 
         | A job that doesn't artificially limit available positions will
         | tend to pay just slightly more than whatever job ranks next for
         | having a wider pool of eligible workers. Something where the
         | next thing in that ranking is panhandling or unemployment is
         | never going to pay well unless prospective workers are turned
         | away.
        
           | vundercind wrote:
           | > Paying people more to cover undesirable shifts means that
           | people with more flexibility or who choose to make more
           | personal sacrifices will get paid more. I remember something
           | about... pharmacists I think it was? and how these factors
           | lined up with some of the traditional "group X gets paid more
           | than group Y" groupings.
           | 
           | This is key because it's close to the thing that made me go
           | "ah ha" reading the intro: modern surveillance and
           | algorithmically-managed pricing (so, cheaply modified at
           | arbitrarily-fine resolution based on arbitrarily-many
           | quantifiable factors) open up the possibility of pushing this
           | exact effect from groups of workers to _individual_ workers.
           | 
           | You can avoid (at least to some degree not previously
           | achievable) addressing a _pool_ of workers and instead only
           | clear the rate for _a particular_ worker. No human management
           | input needed per-decision or in any part of the broader
           | offer-decision process and surrounding data gathering and
           | measuring, which is what makes it possible.
        
             | sweeter wrote:
             | In dumb people terms, corporate gig economy players are
             | using algorithms to artificially depress wages of random
             | workers for work that is very similar in scope, if not the
             | exact same (they work similar hours, in a similar area,
             | with similar vehicles and in some cases they are even
             | getting offers for the exact same job with wildly varying
             | wages)
        
               | vundercind wrote:
               | It's like how a normal person who's worked with a couple
               | of solo independent contractors (say, for some work on
               | their house) and has a sense of how they both price
               | things from past bids, might offer a job they need done
               | by a certain time to both of them--exact same job--at
               | different rates, all else being equal (the homeowner
               | rates their work as comparable), just because they know
               | one of them historically bids lower. They'd prefer the
               | cheaper one, _but are willing to pay either rate_ , and
               | need the job done by time X, so offer it to both, first
               | to accept gets it.
               | 
               | Now throw in a bunch more factors than just prior bid
               | history, thousands of workers in the dataset instead of
               | two, _and_ such high volume and pace of work that you can
               | afford to periodically experiment by setting, say, a
               | random 10% of each set of offer-receivers lower than your
               | formula would usually suggest, to see if anything's
               | changed and maybe they're more-desperate for some reason
               | (you don't even need to know why... though, imagine if
               | you _could_ spot reasons some workers might be more
               | desperate! Hm...)
               | 
               | Now (maybe) extrapolate to similar, slower-paced efforts
               | in less-marginal areas of work. Interesting (yikes)
               | possibilities.
        
             | ryukoposting wrote:
             | This is a topic my friends and I have been talking about
             | since at least 2018, and much of this review just feels
             | affirming. It's good to know 4 bozos in Wisconsin aren't
             | the only ones realizing life sucks for Uber drivers. All I
             | can really do about it is vote.
             | 
             | The thing that stood out to me the most is the transparency
             | argument. When you get paid hourly, you're told upfront how
             | much extra you get paid for overtime, for odd hours, etc.
             | But with rideshare apps, a number just shows up on your
             | screen. You have no knowledge of _why_ that number is what
             | it is.
             | 
             | There's also the social side of the transparency issue.
             | Back when I worked foodservice, I could just ask my
             | coworker what they got paid per hour. As a rideshare
             | driver, you never see your coworkers. Even if you did, you
             | have nothing to compare. There's no "per hour," and "per
             | mile" is rife with caveats, assuming the app even shows you
             | that. With no way to compare to each other, how do
             | rideshare drivers collectively discern what is or isn't
             | fair pay?
        
           | crdrost wrote:
           | No, like, this is fucking different. Read the damn article.
           | Like, get down to pages 42-46. I know it's a lot to read,
           | it's a law review article, it's fine if you don't read it,
           | but like "oh what is it getting at?" is something that you
           | have to read the article to see.
           | 
           | So like, before the gig economy, yes, you might be juggling a
           | job at McDonald's with another at Jo-Ann with a hardware
           | store, and Jo-Ann called up at 7 and said you have to come in
           | Or Else, and then you came in by 7:45 and they said "eh too
           | many people showed up, nevermind" and you're up shit creek,
           | so now you're poking by your McD's which could always use
           | some extra help with the breakfast rush but wants you to
           | clock out between 10:30 and 11:30 so you're having to call up
           | the hardware store to see if you can get paid there.
           | 
           | That is bad, to be sure. You have to be playing all the
           | angles, checking in with everybody, you have to hustle _hard_
           | to make ends meet.
           | 
           | But according to this, your job at GigBurger is one where
           | they say "hey if you can work for at least 6 hours today,
           | we'll give you a big bonus," with the caveat that you are
           | auto-clocked-out not just at 10:30 but whenever there's
           | nobody in the checkout line or drive-thru, so that "6 hours
           | minimum wage" has to be accumulated over 10 actual hours at
           | work -- which is fine _if you can get that bonus_. But the
           | shitty algorithmic part is that when you get the GigBurger
           | App to rack up 5 hours of work, suddenly it says  "oh shoot
           | we're overbooked for your current GigBurger Restaurant, but
           | you know there's a big surge in customer demand over on the
           | other side of the city, go there and get 2x wages and you'll
           | also make your last 1h for sure" and they are _fuckin ' lying
           | to you_ and leading you to other overbooked GigBurgers in the
           | hopes that they can run you back and forth across the city
           | without paying you until they exhaust your desire for that
           | last hour's work that would get you the bonus. And you have
           | to be able to discern between actual surges and algorithmic
           | lying to determine whether to attempt the journey across the
           | city or just stay put and see if the GigBurger next door has
           | someone clock out early.
           | 
           | The article clearly lays out why this is a difference in
           | quality, not just quantity: it says that the default American
           | story of "hard work and hustle will be rewarded", which you
           | absolutely had in the "unpredictable schedules" world that
           | you are talking about, shifts to one where the psychological
           | story is that "GigBurger is a casino, roll the dice and hope
           | to God that you get lucky today." Any individual
           | unpredictable job might have been a casino, but you knew that
           | your employers weren't all _in cahoots to deprive you of a
           | promised lucky payoff_ that was the only thing that made the
           | job sorta worth it.
        
             | mewpmewp2 wrote:
             | That sounds more like a poorly optimized, buggy and
             | unbalanced algorithm.
             | 
             | Would it be fine if there's an algorithm that was able to
             | more accurately predict that if you go to this location at
             | those hours you would be able to make 1.5x more for the
             | several few hours?
             | 
             | There's no reason an algorithm shouldn't be able to do
             | that.
             | 
             | Or an algorithm where you can specify how many hours you
             | plan to work and then it will provide what it calculates
             | the most optimal path for you to take, where perhaps you
             | can even use a slider to quickly test.
        
               | crdrost wrote:
               | We could only know whether the algorithm is competent or
               | incompetent, if we can see what it is and what it is
               | optimizing for and how is it doing at that. Without
               | transparency into GigBurger, you can't tell.
               | 
               | This was the nice thing about working for an MEP*
               | subcontractor, I got to see the unions and the company
               | teaming up, "look the margins are razor thin, we want to
               | get home safe and make ends meet but not if it starves
               | the company and we're all out of a job in 5-10 years."
               | And in that environment, every pipefitter could know that
               | the algorithm isn't specifically screwing them over. The
               | unions needed our explicit sign-off that our tech to help
               | them track the status of their projects wasn't gonna be
               | able to be used to track how much time their folks spent
               | in the bathroom on a given day. But try telling Uber that
               | they need a driver's union, see how far you get.
               | 
               | *Mechanical, Electrical, and Plumbing. I don't fully
               | understand the contracts side but basically the general
               | contractor will take a big construction job and the
               | biggest margin, then subcontractors will design and do
               | parts of the actual fabrication and installation.
        
               | mewpmewp2 wrote:
               | Would it be fine if this algorithm had to be open source?
        
       | advael wrote:
       | As with price discrimination, I think there are only two possible
       | ways this can go:
       | 
       | Either we pass some laws that deeply upset some oligarchs and
       | future eras see this one as a "wild west" of data-driven
       | exploitative practices, or we permanently destroy the bargaining
       | power of everyone not big enough to be doing mass-surveillance,
       | which is effectively the end of markets and the rise of a sort of
       | advanced feudalism (which some would argue is quite far along
       | already)
       | 
       | One obviously seems better to me, but to be fair I am biased,
       | being in the class of people who don't own an enormous
       | corporation
        
         | Spivak wrote:
         | If history is any teacher here it's going to be latter with the
         | loudest voices of support coming from people are convinced that
         | these systems couldn't and aren't possibly harming them, that
         | they are above-average and therefore benefiting, and only those
         | slack-jawed lazy nonspecific others who aren't (but absolutely
         | are) working hard will be the target.
        
           | advael wrote:
           | That's definitely the recent history, and the current
           | propaganda strategy of modern oligarchs, but looking even a
           | little beyond living memory there are many other solutions
           | history can offer us, including labor solidarity, trust-
           | busting, and of course more extreme measures that most would
           | likely prefer to avoid, but which history shows us do happen
           | sometimes
        
         | scarmig wrote:
         | The third way is that companies find hiring workers, with all
         | their complaints and needs and desire for dignity, too
         | inconvenient, so they replace them with things that have none
         | of those.
         | 
         | Particularly relevant since this paper is primarily about ride
         | hailing and delivery services.
        
           | advael wrote:
           | Despite all the hand-wringing most claims to be able to do
           | this seem pretty implausible at this stage. But for the sake
           | of argument, assuming this happens, this is not different
           | from the second scenario I've described. Of course, if there
           | are no workers, one wonders how companies might find
           | "consumers" against whom to price-discriminate, but with
           | companies unilaterally and individually controlling both what
           | people pay and are paid, the whole system of labor and
           | consumption as a market is a fiction anyway. It's crazy that
           | so many people seem to think that transformative technologies
           | will both somehow replace all human labor and keep all
           | present economic relations intact except for the ability of
           | anyone to get a job, given how many economic choices have
           | been made to center labor as the primary means by which
           | people are supported. To reiterate, the options are prevent
           | this nonsense through collective action (either in the form
           | of a government or through other forms of coordination) or
           | move to a more oppressive relationship between a tiny
           | population of oligarchs and everyone else than the "labor
           | market" that is ostensibly the way this economic relationship
           | is currently arranged
        
             | scarmig wrote:
             | For the ride hailing side of things, it's already happened;
             | there is no question of plausibility. I've probably done 50
             | rides in 2024, and only two had human drivers.
        
         | ryukoposting wrote:
         | It's not hard to see where this is going. Rideshare drivers
         | have already become essentially their own underclass in
         | America. They seldom own the equipment of their job, yet
         | they're responsible for all the maintenance costs, costs for
         | their (mandatory) insurance are horrendous, and they're left
         | with hardly anything before they've even paid for medical
         | insurance or an apartment.
         | 
         | It's not really sharecropping, since Uber doesn't write car
         | loans. Feudalism? In a society so utterly dependent on cars,
         | that doesn't seem terribly far off.
        
           | advael wrote:
           | Yea, feudalism is probably the best description, and it
           | applies to cars as well as anything with a computer in it, as
           | well as the more traditional land and food supply. This is
           | not that surprising given that the safeguards that have been
           | systematically dismantled over the last 50 years were by and
           | large created to prevent feudalism, as was most of the
           | apparatus of what we currently call "government"
        
             | ryukoposting wrote:
             | It does now raise the question - are other countries,
             | particularly those with well-developed public transit
             | infrastructure, more insulated from this _particular_ form
             | of techno-feudalism? It seems to me like the essential-ness
             | of a resource is what enabled feudal structures around it.
        
               | advael wrote:
               | I think so, but the pushes to integrate privately-
               | controlled computers into every facet of required
               | infrastructure means the feudalism in other domains has
               | come and will continue to tighten for any country that
               | doesn't adequately rebuff it
        
               | ryukoposting wrote:
               | Good point.
               | 
               | I suppose the "good" news is that none of the rideshare
               | companies have managed to prove that their business model
               | is even profitable. So, even in this stupid postmodern
               | techno-feaudalist hellscape, maybe we won't have people
               | effectively indentured by their cars.
        
               | advael wrote:
               | The entire history of the tech industry is one of
               | profitability being a trifling concern compared to buy-in
               | from the investor class and sometimes government
               | subsidies. Feudalism doesn't require profits, only power
               | over resources
        
               | AnimalMuppet wrote:
               | Mega-rich people aren't investing in Uber in order to
               | acquire power over serfs. They're doing it in order to
               | make more money. So far, they seem to be mistaken in the
               | potential profitability, but that doesn't make "feudal
               | power over others" their _goal_.
               | 
               | Profitability may be a trifling concern for the
               | _companies_ , but it's not for the _investors_.
        
       | mrguyorama wrote:
       | If this outcome is a surprise to you, you have not been paying
       | attention. Managers and Owners dream of reducing wages every
       | single night. Every penny they aren't paying you is a penny they
       | keep, and they, for some reason, think they are rightfully
       | entitled to every penny, while you are a brat for feeling
       | entitled to even a few pennies.
       | 
       | More importantly, if your boss doesn't think like that, you can
       | expect his boss to replace him with a manager that DOES.
       | 
       | This downward force on labor prices is basically the entire point
       | of the gig economy, and even youtubers whose only formal training
       | is in how to write a high school essay figured this out.
       | 
       | For this reason, there is institutional pressure to turn anything
       | they can into gig economies. If you don't have empathy for the
       | uber drivers who sleep in their car to be able to make as many
       | rides as they can and still somehow end up below minimum wage,
       | don't worry, they'll come for you soon. And when they've made the
       | gig economy literally the only gig in town, it doesn't matter how
       | savvy you think you are at "negotiation", you will get fucked
       | too.
       | 
       | Go read up on your labor rights history. None of what we have is
       | a default, and the "haves" HATE it.
        
       | foolofat00k wrote:
       | The thing that people consistently miss with these types of
       | conversations is that any increase in the sophistication of the
       | tech that exists to measure the world gives a relative benefit to
       | corporations over individuals.
       | 
       | This is because those organizations almost always have more
       | resources to dedicate towards making effective use of that
       | information than do individuals.
       | 
       | Very often you as an individual are up against a team of PhDs and
       | engineers whose job it is to enable the corporation to beat you,
       | and the more data they have, the more likely they are to win.
       | 
       | In this respect, there is basically no tech that does not benefit
       | corporations more strongly than it benefits individuals. This is
       | one of the reasons that regulation is important.
        
         | CatWChainsaw wrote:
         | They don't "miss" this fact. It's inconvenient to libertarian
         | la-la land dreams so it's ignored with prejudice, especially
         | here. So many temporarily embarrassed millionaires on HN.
        
       | _gmax0 wrote:
       | Off-topic, does anyone know whether the source code for this UI
       | is open source?
        
       | josefritzishere wrote:
       | This is very apropos after seeing the Pave post.
        
       | Manuel_D wrote:
       | "Wage discrimination" as described in the article is not an
       | unfair or illegal practice:
       | 
       | > "Algorithmic wage discrimination" refers to a practice in which
       | individual workers are paid different hourly wages--calculated
       | with ever-changing formulas using granular data on location,
       | individual behavior, demand, supply, or other factors--for
       | broadly similar work.
       | 
       | Surge pricing is a form of "algorithmic wage discrimination".
       | Driving for Uber on a Friday night will net you more than a
       | Monday at noon. Likewise, the fact that wages are higher in
       | expensive metros is another form of "algorithmic wage
       | discrimination." People hired during periods of a labor shortage
       | may have a higher wage than a co-worker hired during an economic
       | downturn. I am skeptical many would point at these scenarios as
       | unfair - but all of these fall under the category of "wage
       | discrimination" as discussed in the article.
       | 
       | I also think this article unnecessarily injects racial messaging
       | and leads readers to think that the algorithms are discriminating
       | on the basis of protected class. That is not alleged in this
       | article.
        
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