AbstractThe rise of “gig” work globally has led to both enthusiasm for its potential to create lucrative employment for a large number of workers, as well as concerns about its implications for social protection. Even where social insurance systems allow for voluntary coverage, take‐up among gig workers has remained low, leaving them unprotected against a range of risks. Looking at the Malaysian labour market, this article investigates whether the low take‐up of social security coverage among gig workers can be explained by the inability or unwillingness of these workers to make the necessary social insurance contributions? We deploy a novel vignette‐based experiment to ascertain gig workers’ willingness to pay for social insurance coverage. We find a large unmet need for social insurance among gig workers, as well as a high level of willingness to pay for unemployment insurance, retirement savings, and work‐related injury insurance. Our analysis suggests that gig workers could benefit more from better tailored, more flexible, and more easily accessible instruments for social insurance, rather than from subsidies or matching contributions alone. We also find evidence of substitution between distinct insurance instruments; those gig workers with access to retirement savings are less willing to pay for unemployment insurance, and those with private medical insurance are less likely to contribute to the public work‐related injury insurance programme. This underlines the need to consider a wider range of insurance instruments for gig workers, including those offered by the private sector.
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