Digital Platforms and the Gig Economy: Socio-Economic Opportunities and Challenges

Abstract

A digital environment has changed the nature of the labor market and the emergence of the gig economy- a new form of a flexible, technologically mediated labor model, that is typified by temporary contracts, freelance work, and jobs defined by tasks. This paper will discuss socio-economic opportunities and threats of incorporating digital platforms into labor markets in developed countries and developing regions across the globe. Using empirical research and theories, the article examines the impacts of gig work on income-making, labor rights, social protection, and autonomy of workers. The impact of platform algorithms, online marketplaces and mobile applications on providing labor flexibility and creating risks of job insecurity, inequality, and exploitation are also taken into account in the study. This study offers a subtle explanation of the transformative nature of the gig economy on employment and the society through the integration of technological, economic and sociological viewpoints.