The Effects of Regulating Platfom-based Work on Employment Outcomes

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The report emphasizes the need for tailored regulatory frameworks to protect digital platform workers, particularly in low- and middle-income countries (LMICs) [3][6][7]. - It highlights the importance of addressing market power asymmetries, information asymmetries, and competition barriers to improve employment outcomes for platform workers [20][12][19]. Summary by Sections Introduction - Digital platform work is defined as task- or gig-based work facilitated through digital marketplaces, connecting workers with clients [14]. - The global employment share of digital platform work is estimated to be between 4.4% and 12.5% of the labor force, excluding location-based services [15]. Interventions and Findings - Market Power Asymmetries: The report discusses the monopsony power of platforms, which can lead to underpayment and restricted flexibility for workers. Regulatory responses may include minimum wage policies and strengthening workers' bargaining power [20][21]. - Information Asymmetries: Employers often have more information than workers, which can hinder workers' ability to find suitable jobs. The report suggests improving transparency and access to information about employers [28]. - Competition Barriers: The competitive environment of platforms affects the treatment of workers. The report notes a lack of empirical evidence on the effects of addressing competition barriers [12][32]. - Social Insurance: There is a low coverage of social insurance among digital platform workers. Policymakers are encouraged to leverage platform data to extend social insurance coverage [11][17]. Recommendations - Policymakers should consider a combination of labor market regulations, product market regulations, and social protection measures to effectively support digital platform workers [12][19]. - The report calls for more research to understand the preferences of digital platform workers regarding social benefits and protections [13].