Digital Transformation and Informal Work: A Narrative Review of Platform Economies in the Global South
DOI:
https://doi.org/10.61194/economics.v3i3.868Keywords:
Digital Platforms, Gig Economy, Informal Labor, Developing Economies, Social Protection, Gender Inequality, Digital DivideAbstract
The rise of digital platforms has significantly transformed informal labor markets in developing economies, offering both opportunities and challenges. This narrative review synthesizes current research on the economic impacts of digital platforms, focusing on job creation, precarity, gender and migrant dynamics, and regional disparities. Literature was collected from Scopus, Web of Science, and Google Scholar using targeted keywords, emphasizing peer-reviewed studies published between 2010 and 2024. Findings indicate that digital platforms contribute significantly to employment generation and income growth, though challenges persist such as income instability, lack of social protection, and algorithmic bias. While digital platforms can drive inclusive growth, their transformative potential depends on regulatory frameworks, social protections, and equitable digital inclusion policies.
References
Artero, J., Borra, C., & Gómez‐Álvarez, R. (2020). Education, inequality and use of digital collaborative platforms: the European case. The Economic and Labour Relations Review, 31(3), 364-382. https://doi.org/10.1177/1035304620943109 DOI: https://doi.org/10.1177/1035304620943109
Arruda, E., & Arruda, D. (2024). Challenges and implications of microwork in the age of artificial intelligence: a global socioeconomic analysis. Hum. Resour. Manag. Serv., 6(2), 3452. https://doi.org/10.18282/hrms.v6i2.3452 DOI: https://doi.org/10.18282/hrms.v6i2.3452
Banik, N., & Padalkar, M. (2021). The spread of gig economy: trends and effects. Foresight and STI Governance, 15(1), 19-29. https://doi.org/10.17323/2500-2597.2021.1.19.29 DOI: https://doi.org/10.17323/2500-2597.2021.1.19.29
Belinskaia, I., Sergeev, S., & Sidnenko, T. (2020). E-university for strategic planning of regional system of engineering education. https://doi.org/10.22616/erdev.2020.19.tf076 DOI: https://doi.org/10.22616/ERDev.2020.19.TF076
Cai, Y., Kong, W., Lian, Y., & Jin, X. (2021). Depressive symptoms among Chinese informal employees in the digital era. International Journal of Environmental Research and Public Health, 18(10), 5211. https://doi.org/10.3390/ijerph18105211 DOI: https://doi.org/10.3390/ijerph18105211
Döhring, B., Hristov, A., Maier, C., Roeger, W., & Thum-Thysen, A. (2021). Covid-19 acceleration in digitalisation, aggregate productivity growth and the functional income distribution. International Economics and Economic Policy, 18(3), 571-604. https://doi.org/10.1007/s10368-021-00511-8 DOI: https://doi.org/10.1007/s10368-021-00511-8
Graham, M., Hjorth, I., & Lehdonvirta, V. (2017). Digital labour and development: impacts of global digital labour platforms and the gig economy on worker livelihoods. Transfer: European Review of Labour and Research, 23(2), 135-162. https://doi.org/10.1177/1024258916687250 DOI: https://doi.org/10.1177/1024258916687250
Gurumurthy, A. (2024). Towards feminist futures in the platform economy: four stories from India. In (pp. 113-126). https://doi.org/10.1007/978-3-031-45976-4_8 DOI: https://doi.org/10.1007/978-3-031-45976-4_8
Hackl, A., & Najdi, W. (2023). Online work as humanitarian relief? The promise and limitations of digital livelihoods for Syrian refugees and Lebanese youth during times of crisis. Environment and Planning A: Economy and Space, 56(1), 100-116. https://doi.org/10.1177/0308518x231184470 DOI: https://doi.org/10.1177/0308518X231184470
Oluka, A. (2024). The impact of digital platforms on traditional market structures. Technology Audit and Production Reserves, 2(4(76)), 21-29. https://doi.org/10.15587/2706-5448.2024.303462 DOI: https://doi.org/10.15587/2706-5448.2024.303462
Rai, A., Chen, Y., & Lin, Y. (2024). Exclusion for public safety or inclusion for gig employment: managing the tension with a trilogy of guardians. MIS Quarterly, 48(4), 1691-1720. https://doi.org/10.25300/misq/2024/18261 DOI: https://doi.org/10.25300/MISQ/2024/18261
Rodríguez‐Modroño, P. (2024). A taxonomy of business models of digital care platforms in Spain. Sociology Compass, 18(7). https://doi.org/10.1111/soc4.13243 DOI: https://doi.org/10.1111/soc4.13243
Rodríguez‐Modroño, P., Agenjo‐Calderón, A., & López-Igual, P. (2023). A feminist political economic analysis of platform capitalism in the care sector. Review of Radical Political Economics, 55(4), 629-638. https://doi.org/10.1177/04866134231184235 DOI: https://doi.org/10.1177/04866134231184235
Tolegen, M., Rovnyakova, I., Radchenko, N., & Sakhariyeva, S. (2024). Crowdsourcing as a social phenomenon in Kazakhstan: opportunities and risks for professional careers. Economic Annals-ХХI, 208(3-4), 55-69. https://doi.org/10.21003/ea.v208-07 DOI: https://doi.org/10.21003/ea.V208-07
Yang, G., Deng, F., Wang, Y., & Xiang, X. (2022). Digital paradox: platform economy and high-quality economic development—new evidence from provincial panel data in China. Sustainability, 14(4), 2225. https://doi.org/10.3390/su14042225 DOI: https://doi.org/10.3390/su14042225
Zhang, H., Sun, X., & Ding, Z. (2023). The interplay of gender, motherhood, and the digital economy in China: exploring the experiences of urban mothers in WeChat businesses. The Journal of Chinese Sociology, 10(1). https://doi.org/10.1186/s40711-023-00194-5 DOI: https://doi.org/10.1186/s40711-023-00194-5
Autio, E., Komlósi, É., Szerb, L., Galambosné Tiszberger, M., Park, D., & Jinjarak, Y. (2025). Digital entrepreneurship landscapes in developing Asia: insights from the Global Index of Digital Entrepreneurship Systems. European Journal of Innovation Management, 28(7), 2845–2872. https://doi.org/10.1108/EJIM-02-2024-0121 DOI: https://doi.org/10.1108/EJIM-02-2024-0121
Chan, J. (2023). Class, labour conflict, and workers’ organisation. Economic and Labour Relations Review, 34(3), 383–394. https://doi.org/10.1017/elr.2023.41 DOI: https://doi.org/10.1017/elr.2023.41
Lima, J. C., & Rangel, F. (2019). Informal work and digital work in Brazil: Different logics of peripheral capitalism. Sociologia Del Lavoro, 154, 141–159. https://doi.org/10.3280/SL2019-154008 DOI: https://doi.org/10.3280/SL2019-154008
Omer, M., & Redlich, T. (2025). A digital platform for enhancing local production networks in resource constrained microenterprises - A case study. Procedia CIRP, 134, 1143–1148. https://doi.org/10.1016/j.procir.2025.02.248 DOI: https://doi.org/10.1016/j.procir.2025.02.248



