The Influence of Gig Economy Platforms on Wage Dynamics Compared to Traditional Labor Markets

The gig economy remains perceived as a new kind of labor market where people engage for short periods and through apps. It impacts on wages and salaries, employment, and contractual status, and economic systems. Technology plays a critical role in facilitating short-term contracts that are relatively rare in the employment sphere. However, there are issues of income volatility, lack of social protection for employees, and labor freedoms (Jain, 2024). While gig platforms disagree with worker independence, they cultivate environments of precarity and dependence on algorithmic supervision (Schor, 2020). Pilatti et al. (2024) describe how power dynamics play out and how employees use social media to resist authority and negotiate a new balance of power. The paper explores the wage relationship of the gig economy with the conventional markets in terms of power relations, tendencies toward exploitation, economic impacts, and prospects.