A Study of Platform Work, Its Combination with Other Work, and Labour Market Outcomes in Finland

Abstract

The research project Platform Work, Its Combination with Other Work, and Labour Market Outcomes in Finland provided nationally representative quantitative evidence on platform work in Finland using linked survey and register data. The study examined the prevalence and profiles of platform workers, differences between onsite and online platform work, the income and labour market trajectories of platform workers, and the combination of platform work with multiple job holding and its differences from conventional multiple job holding.

In 2022, approximately 3.9 per cent of people aged 15–64 engaged in platform work, corresponding to around 132,800 people. Platform work was particularly associated with having a foreign background, self-employment, younger age and urban residence. Higher educational attainment was also associated with platform work.

Clear differences were nevertheless found between onsite and online platform work. In onsite platform work, having a foreign background and living in an urban area were strongly associated with participation in platform work, whereas online platform work was characterised by higher educational attainment, younger age and lower income in the previous year. Foreign background and urban residence were not statistically significantly associated with participation in online platform work. The results show that onsite and online platform work attract distinctly different worker profiles.

The economic position of platform workers was, on average, weaker than that of the comparison group. Platform workers were more likely to be located in the lower parts of the in-come distribution and to receive social security benefits, particularly unemployment bene-fits, housing allowance and social assistance. However, differences in disposable income relative to the comparison group were smaller than differences in earned income. Platform workers also experienced greater variation in monthly income. The longitudinal analysis shows that this variation was primarily associated with more frequent transitions between labour market statuses. Platform workers were less likely than the comparison group to be in established wage employment and more likely to be self-employed, unemployed or students. Nevertheless, the majority of platform workers spent most of the observation period either in wage employment or self-employment.

Prior earnings level differentiates between those who combine platform work with multiple jobholding and those engaged in conventional multiple jobholding.. Conventional multiple job holding was associated with higher income in the previous year, whereas platform work without multiple job holding was associated with lower previous-year income. In the combination of platform work and multiple job holding, previous-year income was not statistically significantly associated with belonging to the group. Part-time work in the main job was associated with both conventional multiple job holding and the combination of platform work and multiple job holding, consistent with the hours constraint hypothesis. Women were less likely than men to combine platform work with multiple job holding, while no corresponding gender difference was observed in conventional multiple job holding.

Overall, the findings portray platform work as a diverse component of the Finnish labour market. Platform workers differ from one another in terms of how they work, their economic position and their labour market trajectories. Recognising this diversity is important both for further research on platform work and for the development of relevant policies.

• ISSN: 2984-3308 (Online)
• ISBN: 978-952-209-246-5 (Online)
• Publication in PDF-format