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Is the online gig economy beyond national reach? A European analysis

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

With the emergence of the online gig economy, computer-based jobs can be completed by gig workers around the world. This raises the question whether the labour market for online gigs is truly boundless as distance no longer matters. Based on gravity models, we investigate the effect of geographical, institutional and cultural distance on almost 30 000 platform hirings between 26 European countries. While we find that online gig platforms are used to off-shore work from high- to low-wage countries, the online gig economy is not boundless as gig workers are still preferably hired from geographically close economies. A common language furthermore facilitates hirings between countries. Interestingly, though, differences in formal and informal institutions hardly affect hiring patterns across countries, suggesting that online platforms create their own institutional framework. We conclude that the online gig economy constitutes neither a boundless nor a frictionless labour market, implying that its promise of creating equal access to job opportunities is exaggerated.
Original languageEnglish
Pages (from-to)1795–1821
Number of pages27
JournalSocio-Economic Review
Volume21
Issue number3
DOIs
Publication statusPublished - 1 Jul 2023

Bibliographical note

Publisher Copyright:
© 2022 The Author(s). Published by Oxford University Press and the Society for the Advancement of Socio-Economics.

Funding

The development of this paper was funded by a Vidi grant from the ‘Netherlands Organisation for Scientific Research’ (Nederlandse Organisatie voor Wetenschappelijk Onderzoek—NWO). Grant number: 452-17-017.

FundersFunder number
Nederlandse Organisatie voor Wetenschappelijk Onderzoek452-17-017

    UN SDGs

    This output contributes to the following UN Sustainable Development Goals (SDGs)

    1. SDG 8 - Decent Work and Economic Growth
      SDG 8 Decent Work and Economic Growth

    Keywords

    • F66 economic impacts of globalization
    • Gig economy
    • J46 informal labour markets
    • O33 technological change
    • choices and consequences
    • diffusion processes
    • global economy
    • gravity model
    • labor
    • labour market institutions
    • online platforms

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