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How Big is the Gig? Assessing the Preliminary Evidence on the Effects of Digitalization on the Labor Market

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  • Eichhorst, Werner

    (IZA)

  • Hinte, Holger

    (IZA)

  • Rinne, Ulf

    (IZA)

  • Tobsch, Verena

    (E-x-AKT WIRTSCHAFTSFORSCHUNG)

Abstract

This paper assesses the importance of digitalization in Germany and other developed countries with a particular attention to the potential or actual impact it may have on the labor market. Referring to available empirical evidence, we document the already developing transformation of occupations and forms of employment and the role of the platform economy, including the phenomenon of solo self-employment. We then derive current and future challenges for social protection and suggest some ideas to update social insurance in the face of these new challenges.

Suggested Citation

  • Eichhorst, Werner & Hinte, Holger & Rinne, Ulf & Tobsch, Verena, 2016. "How Big is the Gig? Assessing the Preliminary Evidence on the Effects of Digitalization on the Labor Market," IZA Policy Papers 117, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izapps:pp117
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    References listed on IDEAS

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    1. Eichhorst, Werner & Hinte, Holger & Spermann, Alexander & Zimmermann, Klaus F., 2015. "Die neue Beweglichkeit: Die Gewerkschaften in der digitalen Arbeitswelt," IZA Standpunkte 82, Institute of Labor Economics (IZA).
    2. Dengler, Katharina & Matthes, Britta, 2015. "Folgen der Digitalisierung für die Arbeitswelt : Substituierbarkeitspotenziale von Berufen in Deutschland," IAB-Forschungsbericht 201511, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Eichhorst, Werner & Tobsch, Verena, 2014. "Flexible Arbeitswelten: Eine Bestandsaufnahme," IZA Standpunkte 72, Institute of Labor Economics (IZA).
    4. Melanie Arntz & Terry Gregory & Ulrich Zierahn, 2016. "The Risk of Automation for Jobs in OECD Countries: A Comparative Analysis," OECD Social, Employment and Migration Working Papers 189, OECD Publishing.
    5. Michael Arnold & Anselm Mattes & Gert G. Wagner, 2016. "Normale Arbeitsverhältnisse sind weiterhin die Regel," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 83(19), pages 419-427.
    6. Karl Brenke, 2013. "Allein tätige Selbständige: starkes Beschäftigungswachstum, oft nur geringe Einkommen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 80(7), pages 3-16.
    7. Eichhorst, Werner & Tobsch, Verena & Wehner, Caroline, 2016. "Neue Qualität der Arbeit? Zur Entwicklung von Arbeitskulturen und Fehlzeiten," IZA Standpunkte 84, Institute of Labor Economics (IZA).
    8. Werner Eichhorst & Alexander Spermann, 2016. "Sharing Economy: Mehr Chancen als Risiken? [Sharing Economy – Boon or Bane?]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 96(6), pages 433-439, June.
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    Cited by:

    1. Werner Eichhorst & Ulf Rinne, 2017. "Digital Challenges for the Welfare State," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 18(04), pages 03-08, December.
    2. Hilmar Schneider & Ulf Rinne, 2017. "The labor market in Germany, 2000–2016," IZA World of Labor, Institute of Labor Economics (IZA), pages 379-379, July.
    3. Santana, Monica & Cobo, Manuel J., 2020. "What is the future of work? A science mapping analysis," European Management Journal, Elsevier, vol. 38(6), pages 846-862.
    4. Ting Zhu & Xiaqing Chen & Wenwen Zhang & Basil Sharp, 2023. "Analysis of the Spatial–Temporal Evolution of the Digital Economy and Its Impact on the Employment Structure in China from 2001 to 2020," Sustainability, MDPI, vol. 15(12), pages 1-18, June.
    5. Konuk, Hızır & Ataman, Göksel & Kambur, Emine, 2023. "The effect of digitalized workplace on employees' psychological well-being: Digital Taylorism approach," Technology in Society, Elsevier, vol. 74(C).
    6. Valerio De Stefano & Antonio Aloisi, 2018. "European legal framework for "digital labour platforms"," JRC Research Reports JRC112243, Joint Research Centre.
    7. Violeta Sima & Ileana Georgiana Gheorghe & Jonel Subić & Dumitru Nancu, 2020. "Influences of the Industry 4.0 Revolution on the Human Capital Development and Consumer Behavior: A Systematic Review," Sustainability, MDPI, vol. 12(10), pages 1-28, May.
    8. Askitas, Nikos & Eichhorst, Werner & Fahrenholtz, Benedikt & Meys, Nicolas & Ody, Margard, 2018. "Industrial Relations and Social Dialogue in the Age of Collaborative Economy (IRSDACE)," IZA Research Reports 86, Institute of Labor Economics (IZA).
    9. Gábor Szabó-Szentgróti & Bence Végvári & József Varga, 2021. "Impact of Industry 4.0 and Digitization on Labor Market for 2030-Verification of Keynes’ Prediction," Sustainability, MDPI, vol. 13(14), pages 1-19, July.
    10. Thomsen, Stephan L, 2018. "Die Rolle der Computerisierung und Digitalisierung für Beschäftigung und Einkommen," Hannover Economic Papers (HEP) dp-645, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    11. Maria Denisa Vasilescu & Andreea Claudia Serban & Gina Cristina Dimian & Mirela Ionela Aceleanu & Xose Picatoste, 2020. "Digital divide, skills and perceptions on digitalisation in the European Union—Towards a smart labour market," PLOS ONE, Public Library of Science, vol. 15(4), pages 1-39, April.
    12. Mirzaei Abbasabadi, Hamed & Soleimani, Mohammad, 2021. "Examining the effects of digital technology expansion on Unemployment: A cross-sectional investigation," Technology in Society, Elsevier, vol. 64(C).
    13. Grybauskas, Andrius & Stefanini, Alessandro & Ghobakhloo, Morteza, 2022. "Social sustainability in the age of digitalization: A systematic literature Review on the social implications of industry 4.0," Technology in Society, Elsevier, vol. 70(C).
    14. Büchi, Giacomo & Cugno, Monica & Castagnoli, Rebecca, 2020. "Smart factory performance and Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    15. Corinna Funke & Georg Picot, 2021. "Platform work in a Coordinated Market Economy," Industrial Relations Journal, Wiley Blackwell, vol. 52(4), pages 348-363, July.
    16. Antonio ALOISI & Valerio DE STEFANO, 2020. "Regulation and the future of work: The employment relationship as an innovation facilitator," International Labour Review, International Labour Organization, vol. 159(1), pages 47-69, March.
    17. Hilmar Schneider, 2019. "The labor market in Germany, 2000–2018," IZA World of Labor, Institute of Labor Economics (IZA), pages 379-379, December.

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    More about this item

    Keywords

    digitization; robots; automation; future of work; industry 4.0; technical changes; sharing economy; platform economy; labor market; welfare state;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • 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
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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