PLATFORM BUSINESS MODELS AS A DRIVER OF DIGITIZATION OF THE ECONOMY AND TRANSFORMATION OF THE LABOR MARKET
Abstract
The article examines the role of platform business models in the digital transformation of the economy and their impact on the labor market. It defines platform business models as multi-sided digital networks that facilitate interactions among producers, consumers, and other participants in an ecosystem. For this study, recent global research and reports on the platform economy were analyzed to identify current trends and effects. It establishes that platform companies have become dominant players in the digital economy and are driving the digitalization of various industries. Today, platform-based firms account for a large share of global market capitalization and have become engines of innovation across sectors. The spread of platform-based solutions is shown to alter the structure of employment, leading to the growth of the gig economy and the emergence of new non-standard forms of employment. The implications of this shift for the nature of labor relations are analyzed: increased work flexibility is accompanied by risks of job instability and lack of social protection for workers. Overall, the findings illustrate a dual impact: platformization offers new opportunities for economic efficiency and flexible work arrangements, but also heightens the precarity of work and increasing inequalities among workers. The study outlines the key challenges and opportunities associated with the platformization of the economy, in particular highlighting the need to adapt regulatory policies and social protection systems to the new labor market conditions. The conclusions emphasize that platform business models act as a catalyst for innovation and efficiency in the economy while fundamentally transforming labor market dynamics. Future research should focus on assessing the long-term socioeconomic impacts of platformization, evaluating cross-country policy responses, and formulating strategies to promote decent work, equity, and inclusive digital growth. Addressing these issues is essential to harness the benefits of platform business models while minimizing their societal costs.
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