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Cited by 141Digital Economy and Work TransformationLegal and Labor StudiesLabor market dynamics and wage inequality

Gig economy platforms: Boon or Bane?

Cyrille Schwellnus, Assaf Geva, Mathilde Pak, Rafael Veiel·2019·OECD Economics Department Working Papers
DOI 10.1787/fdb0570b-en
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Abstract

The rapid emergence of gig economy platforms that use digital technologies to intermediate labour on a per-task basis has triggered an intense policy debate about the economic and social implications. This paper takes stock of the emerging evidence. The results suggest that gig economy platforms’ size remains modest (1-3 per cent of overall employment). Their growth has been most pronounced in a small number of services industries with high shares of own-account workers, suggesting that thus far they have been a substitute for traditional self-employment rather than dependent employment. New evidence provided in this paper is consistent with positive effects of platform growth on overall employment and small negative or insignificant effects on dependent employment and wages. While most empirical studies suggest that platforms are more efficient in matching workers to clients, reductions in barriers to work could offset such productivity-enhancing effects by creating employment opportunities for low-productivity workers. Fully reaping the potential benefits from gig economy platforms while protecting workers and consumers requires adapting existing policy settings in product and labour markets and applying them to traditional businesses and platforms on an equal footing.

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Crossref · 10.1787/fdb0570b-en

Cites

32 of 32 references verified0 citation errors · 0 not checkable

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  • The growth of online gig platforms creates challenges for traditional incumbent industries because these platforms have better matching algorithms, flexible schedules, and lower entry barriers.

    “The rise of these gig platforms has brought challenges to traditional, incumbent industries 1 due to their superior matching algorithms (Cramer and Krueger 2016), flexible work schedules (Hall and Krueger 2018), and lower entry barriers (Schwellnus et al. 2019).”

    From Skill-Biased Technical Change, Again? Online Gig Platforms and Local Employment (2025) · cites this paper as Schwellnus et al. 2019

  • Online gig platforms reduce search costs and improve matching efficiency by connecting workers with clients according to service requirements and preferences.

    “Specifically, these platforms excel in connecting workers with clients based on service requirements and preferences, thus reducing search costs and enhancing matching efficiency (Schwellnus et al. 2019).”

    From Skill-Biased Technical Change, Again? Online Gig Platforms and Local Employment (2025) · cites this paper as Schwellnus et al. 2019

  • Prior studies on online gig platforms' labor effects have presented competing theories and relied mostly on anecdotal evidence.

    “Extant studies have debated the role of these platforms on local labor markets, often presenting competing theories and relying mostly on anecdotal evidence (Fraiberger and Sundararajan 2017, Schor 2017, Schwellnus et al. 2019).”

    From Skill-Biased Technical Change, Again? Online Gig Platforms and Local Employment (2025) · cites this paper as Schwellnus et al. 2019

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Related

Authors
Schwellnus, C., Geva, A., Pak, M., & Veiel, R.
Affiliations
Organisation de Coopération et de Développement Economiques (FR)
ORCID
Cyrille Schwellnus
Venue
OECD Economics Department Working Papers
Publisher
Organisation for Economic Co-Operation and Development (OECD)
Published
2019-05-21
ISSN
1815-1973 (ISSN-L)
DOI
10.1787/fdb0570b-en
OpenAlex
W2945199682
Cited by
137
References
33
Citations by year
2026: 2 · 2025: 7 · 2024: 12 · 2023: 47 · 2022: 37 · 2021: 15 · 2020: 10 · 2019: 4 · 2018: 1
Type
report
Language
en
Open access
closed
Locations
OECD Economics Department working papers (publishedVersion)
Topics
  • Social Sciences › Sociology and Political Science › Digital Economy and Work Transformation
  • Social Sciences › Business, Management and Accounting › Industrial relations › Legal and Labor Studies
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
Keywords
gig economy platforms, self-employment, dependent employment, employment effects, wages, barriers to employment, labour market policy, product market regulation, digital platforms

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