Underlying Opportunities and Challenges of Digitalization in Gig Economy

Title

Underlying Opportunities and Challenges of Digitalization in Gig Economy

Creator

Mukherjee S.; Tomar R.

Description

There has been enormous growth in the gig sector across the world. The term gig refers to the short-term arrangement. For instance, an aspiring musician might celebrate after he obtains a gig contract or a painter may get a gig contract for some particular period of time. Both of them might get paid either a fixed fee or a fee based on the contract given. The gig economy has given rise to freelance workers, part-time workers, project-based workers, independent contractors, and contract workers. The gig economy has occupied a prominent place in the United States. According to the survey conducted by Intuit, nearly 40% of American workers are working as an independent contract worker in the year 2020. By means of the increase in the cost level and large masses seeking for jobs and livelihood, the concept of gig economy has opened doors for earning extra income through the gig work. The concept of digital platforms, greater digitalization, and accessibility to higher technology advancement such as the adoption of Artificial Intelligence is giving a boost to the concept of gig economy. There has been a growth in the acceptance of smartphones and the percentage of digitalization is an aiding factor permitting gig freelancers to offer numerous qualified services over the tech-based platform. Gig employees have the potential of signing any tasks in which they have a specific skill set. For example, a worker specialized in interior beautification on an ad-hoc basis for various customers as an alternative of undertaking a full-time inside designing work at a company. Advanced countries such as the United States were the initial adoption of the gig economy started due to advanced rates of digitalization, economic growth, and increase in the disposable income. All these enabling factors were responsible for foremost growing firms being initiated in the United States. Examples of firms are Uber, Airbnb, and Upwork. Nations such as the United States are presently a frontrunner in the international gig economy. On the contrary, emerging nations like India characterize a countless latent in terms of adoption of the gig economy. The reason behind the boost in gig economy is the growing supply of outworkers and lesser skilled labour force. With further knowledge diffusion and the upgrading in human resources and capital, India will nurture in the worldwide gig economy at a hastening pace. India can follow the United States gig economy by studying its trends and encourage the possible gig responsibilities. There are instances such as Ola and OYO operational in the Indian Economy. 2025 selection and editorial matter Alex Khang, Babasaheb Jadhav, Vugar Abdullayev Hajimahmud and Ipseeta Satpathy; individual chapters, the contributors.

Source

Synergy of AI and Fintech in the Digital Gig Economy, pp. 268-283.

Date

2024-01-01

Publisher

CRC Press

Coverage

Mukherjee S., Department of Economics, MIT World Peace University, Pune, India; Tomar R., Department of Economics, Christ University, NCR Ghaziabad, India

Rights

Restricted Access

Relation

ISBN: 978-104011708-8; 978-103271676-3

Format

Online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.1201/9781032720104-17

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