Platform workers face more variability in income and labour market status than rest of population
Platform workers in Finland have a lower average annual income than people who do not engage in platform work, new research indicates. Platform workers’ income and sources of income also vary more than in the rest of the population. They transition more frequently than others between wage employment, self-employment, studies and unemployment.
Platform workers’ taxable earned income in 2022 averaged around 32,200 euros, while those with no reported platform work earned an average of around 37,000 euros. Platform workers also earned less in entrepreneurial income than others with income from self-employment.
Furthermore, month-to-month volatility in wage income was greater among platform workers than in the rest of the population.
“This higher income volatility was largely due to platform workers transitioning more often than others into and out of months with wage income,” says Aart-Jan Riekhoff, senior researcher at the Finnish Centre for Pensions.
Platform workers were less likely than others to be in wage employment and more likely to be self-employed, unemployed or students. They also transitioned more frequently between different labour market statuses.
Platform workers are often low-income
Findings from the research indicate that platform workers are low-income earners more often than the rest of the population and rely more often on social security, such as unemployment benefits, housing allowance, financial aid for students, and social assistance.
“However, based on our research it’s impossible to say whether this is an outcome of platform work or whether the decision to move into platform work is motivated by an already low income and unemployment,” says Susanna Sten-Gahmberg, senior researcher at the Finnish Centre for Pensions.
Platform workers are a heterogeneous group
It is clear from the results that platform workers are by no means a homogeneous group. Although they are low-income and feel insecure in the labour market more often than the rest of the population, there are also those who are in a stronger position.
Onsite and online platform workers were found to differ both in terms of sources of income and social benefits use.
“Onsite platform workers received income from entrepreneurial activities as well as various social benefits more often than platform workers who only worked online. This may indicate that online platform work is more frequently done as a side job,” Aart-Jan Riekhoff suggests.
Platform work is not necessarily a full-time job
Platform work is not necessarily a full-time job but often done alongside studies, unemployment, self-employment or other wage employment.
“Platform workers tend to have less stable income and employment trajectories than those who do not engage in platform work. We need more flexible social security and administrative processes that can accommodate rapid changes and overlap in employment, self-employment and benefits use,” Susanna Sten-Gahmberg says.
Survey on platform work
The results are based on a representative pilot survey on platform work conducted in 2022 and linked with administrative register data from Statistics Finland, allowing income and employment outcomes to be followed between 1999 and 2024.
Persons who reported doing platform work were engaged in areas such as taxi or transport services, housing rentals, content production, translation, and the cleaning or construction industry.
The survey is part of a wider research project on platform work, its combination with other forms of work and its career implications in Finland. The project is a joint venture with Merja Kauhanen, chief researcher at the Labour Institute for Economic Research Labore. It is financed by the Finnish Work Environment Fund.
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