Empowerment Potential in Gig Economies for Lower Income Strata

Abstract

The growth of the gig economy is directly related to the expansion of digitalization and internet facilities due to the convenience of connecting firms and employees online. The growth of this economy has had an impact on the reduction of unemployment. The methodology used is a mix of qualitative and quantitative analysis. Data utilized are from government sources. Preliminary data indicated that 56% of new employment being generated in India is by gig economy companies across the blue-collar and white-collar workforce. The study looked into balance sheets and other financial data of Uber and Swiggy. The growth of this sector involved the understanding of cost-effectiveness for the employer as well as the employee working on a contractual or temporary basis. It was found that the important factors were whether the economy is developed or developing, additional income or primary income, and the education and skill set of the employee. Employment opportunities have increased and this could be the future for countries like India, where the demographic dividend could be effectively utilized. This sector's problem is ensuring that workers are not being exploited. The paper will analyze the increasing importance of the “Gig Economy.” How important are these economies in solving issues like employment for both developed and developing economies? Is this an alternative to the ‘Formal Employment’ type of model for economies? How far does employment in this sector help empower the workforce? Does it address the gender inequalities that exist in all economies? How important is this sector as an addition /alternative to the informal sector of developing economies? These and many such questions will be attempted in the course of research.