Platform Economy Reshapes Labor Market

Nov 10-2022   

A recent paper in China Economic Journal co-authored by Prof. Li Lixing of the NSD, Mo Yiqing, a Ph.D. student of the NSD, and Associate Prof. Zhou Guangsu of Renmin University’s School of Labor and Human Resources offers comprehensive examination of the impacts of digital platforms on the Chinese labor market and lays out policy advice.

Research showed that China’s digital economy employed 191 million people in 2018, or 24.6% of the total jobholders. The paper zooms into four areas where digital platforms are wielding considerabel influences, namely employment, entrepreneurial undertakings, corporation organization, and labor safeguards.

According to the authors, the development of platform economy has accelerated the change of the nature of work, namely from manual labor to automation, from off-line to online, and from fixed employment to flexible arrangement. The share of gig workers has been quickly increasing in the Chinese labor market. The structural transformation of labor market partly reflects the trend of dis-organization, typified by division of production procedures, restructuring of tasks, and large-scale outsourcing. While traditional single-employer full-time jobs are replaced by self-employment and gig jobs, the employment relationship is experiencing structural transformation, too. The current labor protection and social security systems face great challenges both in China and globally. Establishment of a flexible and portable benefit account for gig workers could be potential options to address these challenges.

Prof. Li Lixing is the Ministry of Education’s Changjiang Young Scholar. His research areas encompass development economics, human capital, and public finance, among others. He has been presented with a number of PKU awards for research and teaching excellence.