Impact Of Digitalization On Demand Economy

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Impact Of Digitalization and the On-Demand Economy On Labor Markets and the Consequences for employment and Industrial Relations M. HALIMABEE S. JAYASHREE M. KOKILA I B.B.A.K.C.S.KASI NADAR COLLEGE OF ARTS & SCIENCE, CHENNAI-21 Abstract Digitalization is transforming business landscapes and the world of work, and redefining the boundaries of production, consumption and distribution. This has created tremendous opportunities, as new products, processes and techniques have emerged, but has also created threats, as new ways of employment pose new challenges to employers and employees. The overall consequences on labour markets are, however, still highly uncertain, which is reflected in the wide variation in the outcomes of the existing…show more content…
The online ondemand economy is not a homogenous market. There are great differences between the characteristics of the work that is intermediated and the jobs that are being created. In general, there are three main distinguishing factors. The first factor is the type of activity; on-demand platforms are intermediating goods, services and combinations of both. The greater the goods component of the activity, the smaller the labor component. The second factor is the location of the activity. Some intermediated products/services are virtual, which creates in general a larger, more competitive market. The third distinguishing factor is that one can find both high- and low-skilled services on offer. The current paradigm might, however, shift when the on-demand economy expands and other sectors are affected. Besides the direct impact on people working for platforms, a larger on-demand economy might also have an implications for labour relations. Traditional businesses and industries might be more constrained in their offerings to employees and could start using platforms to outsource some activities as well as use techniques similar to those of platforms to allocate and schedule…show more content…
There are, however, largely diverging views on the extent to which broader application of ICT and new digital technologies such as data analytics, artificial intelligence, 3D printing, cloud computing, the Internet of things (IoT) and robots will cause change, eliminate existing jobs, and create new activities and jobs. Besides automation, globalization, economic developments and the changing preferences of consumers and procedures will also change labor demand and supply. The previous industrial revolutions led to welfare gains and an increase in jobs, though in most cases it took some time before they were realized. In fact, technological development, e.g. steam, electricity, the assembly line, first led to a contraction of the economy before it started growing again (Mokyr et al., 2015; OECD, 2015). It remains to be seen whether the digital revolution will also lead to an improvement of socio-economic conditions. Based on currently available information it is impossible to be conclusive about the specific processes and groups that will be affected by
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