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Remote work could widen disparities in the labor force.

Jason Caldwell, a marketing manager at WordPress.com, makes safely in the six figures working from Billings, Mont. His employer pays workers based on job responsibilities and qualifications, regardless of location.Credit...Shirley Yu for The New York Times

As the shift to remote and contract work accelerates, some workers could see an increase in disposable income and flexibility, but others could be pushed into contracting arrangements that lower their wages and make their livelihoods more precarious. Even highly skilled workers may find it harder to band together to improve their pay and working conditions.

The ease of working as a freelancer can be a boon to many skilled workers, who can command high hourly rates through Upwork and other freelancing marketplaces.

But for lower-skilled workers, such as those in customer service or data entry, working as a contractor tends to reduce wages and increase insecurity. Companies often pay low-skilled employees above-market wages because they have internal pay scales, but pay only the market price for a contractor or freelancer.

Sandy Pope, the bargaining director for the Office and Professional Employees International Union, which represents workers at the crowdfunding site Kickstarter as well as university and clerical staff members elsewhere, said remote work could create inequality among workers performing the same job because it was harder for them to share information discreetly outside an office.

“There’s a lack of transparency,” Ms. Pope said. “The lack of ability to even track what’s going on.”

She said this lack of transparency could also make it easier for companies to outsource work without employees’ knowledge.

Noam Scheiber is a Chicago-based reporter who covers workers and the workplace. He spent nearly 15 years at The New Republic magazine, where he covered economic policy and three presidential campaigns. He is also the author of “The Escape Artists.” More about Noam Scheiber

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