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How Mirror-Image Effects Shape Online Labour Markets

Project description

How to make the ‘gig economy’ work for workers

Today’s job market is evolving online. Digitalisation and connectivity are changing the work relationship and giving rise to the ‘gig economy’. For instance, workers are hired through internet platforms to complete a one-time service task (a ‘gig’). But how is this growing into a major labour market? Of course, the online part (tasks to be completed at the computer like programming, editing and translation) constitutes the first global labour market. In this context, the EU-funded www.WORK project will investigate what happens when gig workers offer services at low rates that do not allow for health insurance or building up pensions. Specifically, it will develop a new paradigm in institutional research of online markets.

Objective

The 'gig economy', where workers are hired through internet platforms to complete a one-time service task (a 'gig'), is growing into a major labour market. Yet, we still lack a theory of how it develops. Its online part, including tasks to be completed at the computer (e.g. programming or translations), constitutes the first truly global labour market. Faced with unprecedented competition, most gig workers offer their services at low rates that do not allow for insurances or building up pensions. Several governments therefore consider making social security contributions compulsory. But can regulation at the national level protect workers in online markets, or will the demand for online gigs simply relocate to low-wage, low-protection economies?
Based on an interdisciplinary framework of theories on varieties-of-capitalism, innovation systems, and entrepreneurial ecosystems, I propose a new institutional theory on mirror-image specialization: I hypothesize that education and labour-market institutions lead requesters, platforms, and providers of online gig work to specialize in hiring, transacting, and offering those skills that are least available in their home labour markets. This leads to specialization patterns in a countrys online gig economy opposite to those in its traditional labour market. If this is the case, my theory breaks ground for a new paradigm in institutional research of online markets and indicates that national policy-making can protect gig workers without risking the relocation of gig demand.
To enable this theoretical high-risk/high-gain contribution, I will go beyond the empirical state-of-the-art of single-platform studies by collecting novel, large-N data on gig requesters (WP1), platforms (WP2), and gig providers (WP3). Using quantitative and qualitative methods, I will go beyond the analytical state-of-the-art of one-time studies and analyse panel and time-stamped data to gain over-time insights into how the online gig economy unfolds.

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Programme(s)

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Topic(s)

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Funding Scheme

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HORIZON-ERC - HORIZON ERC Grants

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Call for proposal

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(opens in new window) ERC-2021-COG

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Host institution

STICHTING RADBOUD UNIVERSITEIT
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 992 062,50
Address
HOUTLAAN 4
6525 XZ Nijmegen
Netherlands

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Region
Oost-Nederland Gelderland Arnhem/Nijmegen
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 992 062,50

Beneficiaries (1)

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