Understanding the individual labor supply and wages on digital labor platforms: A microworker perspective

Abstract

The emergence of crowdsourcing as a new form of work has introduced a paradox among workers who receive small payments for piecemeal microwork yet continue to participate in microwork digital labor platforms (DLPs). To better understand what sustains microworkers’ participation, this study draws upon individual labor supply theory to quantitatively examine the impacts of microworkers’ motivations, perceptions, and preferences on their labor supply and wages. To explore the meaning of monetary rewards for microworkers, a qualitative inquiry explores microworkers’ spending patterns. Based on a survey of 306 microworkers on Amazon Mechanical Turk, our hierarchical regression analysis reveals that while individual motivations for monetary rewards, enjoyment, and microtime structure have some impact on the microwork labor supply and wages, their impact is limited. Our thematic analysis uncovers diverse meanings attached to microwork earnings. The two most noted are meeting subsistence needs and nonessential expenditures, both of which have positive effects on microwork wages. By investigating the elasticity of the microwork labor supply and wages and offering a nuanced understanding of monetary rewards, our study contributes to information management research on DLPs. Moreover, it provides practical insights for various stakeholders, including microworkers, requesters, and DLP operators.