Exploring the Gig Economy: Global Trends, Challenges, and Policy Paths

What is it about?

This article investigates the structural evolution of the gig economy using a multimethod approach, which includes content analysis of industry reports, comparative legal analysis of regulatory models in several countries, and a case study of Ukraine's gig sector during wartime. The study focuses on the drivers of gig economy growth globally and regionally, particularly examining political and legal implications. It highlights how the gig economy, driven by crisis events and digitalization, represents a complex institutional phenomenon rather than just a labor market trend. The article introduces two conceptual models: a policy roadmap for Ukraine and a causal framework for crisis-driven gig expansion. Findings suggest that the gig economy's rapid growth necessitates updated regulatory responses, as traditional labor protections often do not apply to gig workers, leading to their classification as part of the "precariat." The study also notes the challenges of varying institutional definitions in statistical analysis and calls for consistent cross-country comparisons.

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Photo by Bench Accounting on Unsplash

Photo by Bench Accounting on Unsplash

Why is it important?

This study investigates the structural evolution of the gig economy, highlighting its transition from a marginal segment to a significant component of the global labor market. The relevance of this study lies in its examination of the gig economy's growth drivers, sectoral and regional characteristics, and the challenges posed by inconsistent legal frameworks, especially in transition economies. By synthesizing existing literature and data through a multimethod approach, the study provides a comprehensive understanding of the gig economy's implications for labor market policies and regulatory responses. Key Takeaways: 1. The study reveals that the gig economy's expansion has been driven by digital platforms, the demand for flexible employment, and cost-cutting strategies by firms, further accelerated by crises like COVID-19 and geopolitical events. 2. A comparative analysis of regulatory models in the US, EU, India, China, and Ukraine shows diverse approaches to addressing the lack of labor protections for gig workers, highlighting the need for coherent legal frameworks to ensure sustainable labor market development. 3. The research introduces conceptual models that serve as tools for policymakers, offering a policy roadmap for Ukraine and a causal framework linking crisis-driven expansion of the gig economy, facilitating cross-country comparisons and informed policy design.

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