Work Marketplaces and Dynamism

Business dynamism in the United States has been falling for decades, and was exacerbated by the fact that the startup rate fell during the Great Recession and never fully recovered. Yet in the aftermath of the pandemic, new business formation has surged. The data shows that much of this is in small businesses and self-employment. So, what is driving this? In this analysis, we will argue that online platforms, like Upwork, are unlocking a wave of entrepreneurship and are a force for more dynamism in an economy that greatly needs it.