Adapting to the gig economy: Determinants of financial resilience among “Giggers”

Abstract

The growth of Malaysia's gig sector has been driven by the flexibility of gig work, digitalization, and the rise in unemployment. However, the lack of social protection and insurance has underscored the importance of understanding gig workers’ financial resilience. This study examined the current state of Malaysian gig workers’ financial resilience and identified its components. Analyzing responses from 452 gig workers to a structured survey conducted between June and November 2022 revealed that Malaysian gig workers exhibited low financial resilience when facing adverse shocks. This paper identified financial literacy, income level, and age as significant determinants of financial resilience. These findings underscored the necessity of financial literacy programs, income support initiatives, age-specific support programs, and regulatory framework enhancements to mitigate income volatility and assist gig workers in navigating financial and economic challenges.