Digital Labor and Gig Economy: Microeconomic Perspectives on the Future of Work
DOI:
https://doi.org/10.31305/rrijm.2025.v10.n11.048Keywords:
Gig economy, digital labour platforms, microeconomic theory, labour supply, information asymmetry, behavioural economics, platform competitionAbstract
The rapid expansion of digital platforms has transformed traditional labour markets, giving rise to the gig economy a system of work characterized by flexibility, task-based employment, and algorithmic coordination. This review examines the gig economy through the lens of microeconomic theory, highlighting how digital platforms reshape labour supply decisions, wage determination, information asymmetry, and market power. It explores the role of transaction costs, behavioural biases, and principal–agent dynamics in shaping worker–platform relationships. Empirical studies reveal both welfare-enhancing opportunities (autonomy, flexible income sources) and structural challenges (income volatility, lack of bargaining power, and regulatory ambiguity). By integrating insights from behavioural and digital microeconomics, this paper identifies emerging research directions in algorithmic management, data-driven labour allocation, and platform competition, emphasizing the need for balanced policy frameworks to ensure fair and efficient labour markets in the digital age.
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