Question

Which of the following statements about the benefits of the gig economy are correct?

1. The gig economy can lead to financial inclusion and social protection by formalizing labor markets.
2. It primarily benefits employers by increasing their fixed costs and reducing labor flexibility.
3. The gig economy expands labor participation, particularly for women and students seeking supplemental income.
4. It guarantees full-time employment and long-term job security for all gig workers.

• A. i, iii
• B. All
• C. i only
• D. iii only

Answer 1

Answer:

A. i, iii

• The gig economy offers a multitude of benefits that extend beyond mere convenience.

• By providing flexible work opportunities, it enables individuals who may have constraints on traditional full-time employment, such as women with childcare responsibilities or students pursuing education, to participate in the labor force and supplement their household income.

• Furthermore, the increased visibility and data associated with gig work can contribute to the formalization of labor markets, which in turn can facilitate greater financial inclusion and access to social protection mechanisms for workers.

• This formalization process is a significant collateral benefit that can positively impact the broader economic and social landscape.