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Digitalisation and labour markets in developing countries

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  • Fietz, Katharina
  • Lay, Jann

Abstract

Digitalisation has a major impact on labour markets in developing countries. While Internet access expands, digital platforms proliferate and "gig-work" is performed in the Global South, access to and use of digital technologies remains far from universal. As the scope and speed of digitalisation vary across countries and "context matters". The present study reviews the evidence on the effects that selected key aspects of digitalisation on labour markets in developing economies with a focus on digital platforms. Although several studies find considerable effects regarding the employment impacts of digital infrastructures, the evidence on the impacts of digital platforms remains relatively patchy. For example, while transaction data from global online labour platforms demonstrate the important role of the Global South as a supplier on online platforms, we know very little about the extent of work on location-based online platforms. We discuss digital skills to harness digitalisation gains and identify several evidence gaps.

Suggested Citation

  • Fietz, Katharina & Lay, Jann, 2023. "Digitalisation and labour markets in developing countries," GIGA Working Papers 335, GIGA German Institute of Global and Area Studies.
    • Handle: RePEc:zbw:gigawp:335
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Digitalisation; labour markets; employment; digital platforms; digital skills;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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