This article examines the behavioural determinants of job satisfaction among delivery workers in the gig economy of urban Odisha, India. Drawing on Prospect Theory, it explores how reference point dependence, loss aversion and the endowment effect shape satisfaction after workers transition from traditional employment to gig delivery work. Using primary survey data from 1,243 respondents across 5 cities and applying ordered logit models, the study finds that psychological framing matters more than objective job attributes. Workers perceiving outcomes as worse than expected report significantly lower satisfaction, consistent with loss aversion, while social comparisons further influence perceived gains and losses. Prior job attachment also shapes current evaluations, reflecting the endowment effect. These findings highlight that perceived losses and relative evaluations weigh more heavily than material conditions in shaping gig workers’ satisfaction. The study contributes to behavioural labour economics by empirically validating Prospect Theory in the labour market and offers actionable insights for platforms and policymakers aiming to improve worker retention and well-being. JEL: D03, D83, J23, J31, L86, M55
Meher et al. (Thu,) studied this question.