Amid heated debates on Big Tech’s market power, the new legislation in California, called AB5 is gaining traction. We feature Laura Tyson, a former chair of the US President’s Council of Economic Advisers arguing that rather than allowing technology to accelerate the hollowing out of the middle-class, governments at all levels should be strengthening worker protections. We also feature analysis claiming that the determining factor behind your wealth seems to be pure luck.

Middle Management, Geographic Frictions, and Firm Establishment (VOX EU) Geographic frictions, such as the distance between a firm’s headquarter and its establishments, may adversely impact the firm’s performances. Hiring “middle managers” who function like CEOs in regional offices is an effective way to offset this negative externality. Argues middle management may be positive for international firms.

A New Approach to Protect Gig Workers (Project Syndicate) California has passed a new law to make it harder for the Ubers and Lyfts of the World to classify workers as independent workers instead of employees. Given that Trump is against the legislation, it can expected to spur major legal and political battles in 2020. Could see higher wages, so potentially negative gig economy companies.

If You’re So Smart, Why Aren’t You Rich? Turns Out It’s Just Chance (MIT Technology Review) Researchers from the University of Catania simulate how people utilise their talents to exploit opportunities in life and accumulate wealth. Results show that the wealthiest individuals are nowhere near “the most talented” – an important factor is, in fact, pure luck. Suggests taxing the rich.