Sublime

But tech companies behave differently as they add a key feature to traditional supply-side economies of scale: network effects.

Yet they have largely been unmatched by the emergence of appropriate labor market institutions (such as unions and labor regulations) that allow workers to share the potential benefits of these arrangements. Thus, they have tended to raise workplace precarity and contribute to the “hollowing-out” of the middle class in many developed countries[7].

Profits also come, in large part, from the firm’s ability, through its project team structure, to leverage the professional skills of the seniors with the efforts of juniors.