Digital Platform Economies and Labor Market Polarization: An Empirical Study Using Global Microdata

Feite Liu

Pinnacle Academic Press Proceedings Series, 2025, vol. 4, 212-230

Abstract: The rapid expansion of the digital platform economy has transformed global labor markets, not only by introducing new forms of work but also by reshaping the structure of employment across skill levels. This paper advances existing research by integrating global microdata with cutting-edge theories of skill- and task-biased technological change, algorithmic governance, and digital exclusion. The analysis demonstrates that platform economies intensify labor market polarization through the automation of routine tasks, algorithm-driven reallocation of work, and the selective inclusion of workers based on digital access and skills. Notably, the study reveals that the impact of these mechanisms is conditioned by national institutions and welfare regimes, leading to divergent outcomes across advanced and emerging economies. By developing a comprehensive analytical framework, this paper provides new theoretical insights into how platformization restructures occupational hierarchies and offers policy directions for building more inclusive and equitable digital labor markets.

Keywords: digital platform economy; labor market polarization; skill-biased technological change; algorithmic governance (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:dba:pappsa:v:4:y:2025:i::p:212-230

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