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The Digital Market for Local Services: A one-night stand for workers? An example from the on-demand economy

Author

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  • De Groen, Willem Pieter
  • Maselli, Ilaria
  • Fabo, Brian

Abstract

This case study provides a snapshot of the dynamics in the digital market for locally provided personal services. Based on a case study for a Belgium platform with 14,113 identified workers and 9,459 posted tasks, the findings suggest that the current intermediation is inefficient. Only a limited share of the tasks posted on the platform are being completed, whereas the characteristics of the not-completed tasks are fairly limited. Moreover, just a small share of the workers participating in the platform is actually performing the completed tasks. Their average earnings per hour are in most cases above the minimum wage and even above the median wage in the offline market. At the present time, however, the limited earnings for individual workers prevent this mode of working from becoming an alternative to a conventional job. In addition to the standard determinants of workers’ earnings (e.g. gender, age, occupation, etc.), the characteristics and evaluation mechanism of the platform have a large influence on the distribution of tasks and earnings.

Suggested Citation

  • De Groen, Willem Pieter & Maselli, Ilaria & Fabo, Brian, 2016. "The Digital Market for Local Services: A one-night stand for workers? An example from the on-demand economy," CEPS Papers 11438, Centre for European Policy Studies.
  • Handle: RePEc:eps:cepswp:11438
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    File URL: https://www.ceps.eu/system/files/SR%20No%20133%20Sharing%20Economy%20for%20JRC.pdf
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    References listed on IDEAS

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    1. Maselli,Ilaria & Fabo, Brian, 2015. "Digital workers by design? An example from the on-demand economy," CEPS Papers 11030, Centre for European Policy Studies.
    2. Maselli, Ilaria & Lenaerts, Karolien & Beblavý, Miroslav, 2016. "Five things we need to know about the on-demand economy," CEPS Papers 11209, Centre for European Policy Studies.
    3. Jonathan V. Hall & Alan B. Krueger, 2015. "An Analysis of the Labor Market for Uber's Driver-Partners in the United States," Working Papers 587, Princeton University, Department of Economics, Industrial Relations Section..
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    Cited by:

    1. Maier, Michael F. & Viete, Steffen & Ody, Margard, 2017. "Plattformbasierte Erwerbsarbeit: Stand der empirischen Forschung," IZA Research Reports 81, Institute of Labor Economics (IZA).
    2. Serpil ÇİĞDEM, 2019. "Endüstri 4.0 ve Dijital Emek Platformlarının İnsana Yakışır İş Bağlamında Değerlendirilmesi," Journal of Social Policy Conferences, Istanbul University, Faculty of Economics, vol. 0(77), pages 157-199, December.
    3. Fabo, B., 2017. "Towards an understanding of job matching using web data," Other publications TiSEM b8b877f2-ae6a-495f-b6cc-9, Tilburg University, School of Economics and Management.
    4. Brian Fabo & Miroslav BEBLAVY & Karolien LENAERTS & Zachary KILHOFFER, 2017. "An overview of European Platforms: Scope and Business Models," JRC Working Papers JRC109190, Joint Research Centre (Seville site).
    5. Araz Taeihagh, 2017. "Crowdsourcing: a new tool for policy-making?," Policy Sciences, Springer;Society of Policy Sciences, vol. 50(4), pages 629-647, December.
    6. Chris Warhurst & Wil Hunt, 2019. "The Digitalisation of Future Work and Employment. Possible impact and policy responses," JRC Working Papers on Labour, Education and Technology 2019-05, Joint Research Centre (Seville site).

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