The platform economy and the precariat

Abstract

This article takes a labour market perspective on the emerging concept of the ‘sharing economy’ or ‘platform economy’, which we use as a more appropriate term for the phenomenon. Platform economy is in the article understood as those business models that have emerged since the millennium, where digital platforms serve as the link between persons wanting to make use of certain activities, services etc. and those owning them and we only have an interest in the work-related platforms. That means platforms, where paid work is offered and demanded. In a Danish context the platform economy is, both theoretically and empirically, an underexposed area, which justifies the exploratory nature of the article. The article identifies and describes the work-related activities that exist in the emerging platform economy in Denmark, and discuss and assess the challenges from the platform economy; particularly whether and how it leads to new and more pre - carious forms of employment. The article concludes that the work-related activities in the Danish platform economy are somewhat limited. Nevertheless the labour offered through the platforms has a precarious character for instance in terms of lower wages and poorer rights and protection compared to the labour at the traditional, offline labour market. The article also addresses the confusion as to whether the worker is to be considered a wage earner or a self-employed when performing work through the platforms. This may be one of the explanations of that no new legislation or political solutions have yet been realized despite a political focus on the challenges of the platform economy.