Exploring Economic Challenges and Resilience During COVID-19 of Low-Skilled Gig Workers in Urban India | 국외연구자료

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Exploring Economic Challenges and Resilience During COVID-19 of Low-Skilled Gig Workers in Urban India

ADB

2025.04.25

The COVID-19 pandemic caused unprecedented financial distress for workers globally, particularly in developing economies with large informal labor markets. We examine the coping mechanisms adopted by low-skilled platform (gig) and nonplatform workers in India to navigate financial challenges during the pandemic. Using primary survey data and a logistic regression model, we analyze key coping strategies, including reliance on savings, borrowing, asset liquidation, and expenditure reduction. The findings reveal significant differences in coping mechanisms between the two groups: Platform workers were less likely to rely on savings but more likely to borrow or sell assets compared to their nonplatform counterparts. Additionally, gig workers were more inclined to cut back on nonfood expenditures, such as education, reflecting a trade-off between immediate survival and long-term human capital investment. Institutional factors played a crucial role in shaping these strategies. Employer-provided support reduced reliance on distress financing, while government assistance had limited effectiveness. These findings underscore the vulnerabilities inherent in gig work, including income volatility, lack of social protection, and reliance on costly financial mechanisms. This paper contributes to the literature by highlighting the heterogeneity in coping mechanisms within the informal labor market and providing actionable policy insights. Key recommendations include extending social protections to gig workers, facilitating access to affordable credit, offering education subsidies, and strengthening both employer and government support systems. These measures are critical to enhancing resilience and ensuring equitable labor market outcomes during systemic crises.

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