Education, inequality and use of digital collaborative platforms: The European case

Abstract

This study examines the causal relationship between education and the use of digital collaborative platforms as a first step in exploring the potential impact of the new digital labour markets on inequality. From the viewpoint of transaction costs theory, the less educated could benefit significantly from the digital collaborative economy due to the reduction in information costs made possible by this new form of exchange. Conversely, a positive relationship between educational level and platform use may be expected following neoclassical and institutionalist economic theories. Using microdata from the 2016 Eurobarometer survey, together with an instrumental variables strategy and conventional ordinary least squares models, hypothesis testing reveals that education has a clear positive effect on digital collaborative platform use. As a result, the less educated are less likely to access the job opportunities offered by digital labour markets. Understanding the relationship between education and access to digital collaborative platforms and impacts on socio-economic inequality is crucial for designing future public policies that promote social justice and well-being in a disrupted landscape.JEL Codes: I24, J47, O34