THE INFLUENCE OF GIG ECONOMY GROWTH ON LABOR MARKET FLEXIBILITY AND WAGE STRUCTURE: EVIDENCE FROM GLOBAL DIGITAL PLATFORMS

Abstract

The growth of the gig economy through digital platforms has significantly transformed the global labor market, offering flexibility for workers and efficiency for companies. However, this flexibility is often accompanied by income uncertainty and a lack of social protection, especially in developing countries. This study aims to explore the influence of gig economy growth on labor market flexibility and wage structure across various global digital platforms. Using a mixed-methods approach, this study analyzes quantitative data from major digital platforms as well as qualitative interviews with gig workers from various countries. The results show that while the flexibility offered by the gig economy increases labor force participation, high wage variations and a lack of social protection create challenges for worker well-being. The wage structure on gig platforms varies based on the type of job and geographic region, indicating a gap in worker protection and well-being. This study emphasizes the importance of adaptive social protection policies to achieve a balance between flexibility and job stability in the global gig market. The policy recommendations include the adoption of social protection schemes such as self-health insurance that can be accessed across platforms, to strengthen financial security for gig workers.