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Labor in the digital age: Platformization’s uneven impact in developed and developing economies

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  • Ioana Vinași

    (Department of Cybernetics, Statistics and Economic Informatics, Babeș-Bolyai University, Cluj-Napoca, Romania)

Abstract

This study analyzes the heterogeneous labor market effects of digital infrastructure across 134 countries (2010–2022) using first-differenced fixed-effects panel models. Results show that in low-income economies, internet access significantly increases labor force participation but simultaneously reduces formal service employment, indicating substitution toward informal or gig work. No comparable effects are found in high-income countries, underscoring asymmetric digital transitions. These findings suggest that digital access without institutional safeguards may intensify labor precarity rather than promote inclusion. While consistent with the dual-channel hypothesis of participation and substitution, the results remain correlational, not causal.

Suggested Citation

  • Ioana Vinași, 2026. "Labor in the digital age: Platformization’s uneven impact in developed and developing economies," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 11(1), pages 25-38, March.
    • Handle: RePEc:ora:jrojbe:v:11:y:2026:i:1:p:25-38
    DOI: http://doi.org/10.47535/1991ojbe225
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    Keywords

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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