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Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (UPSC GS1 2021)
A gig economy is a free market system in which temporary positions are common and organizations hire independent workers for short-term commitments.
Gig economy can help in process of empowerment of women in India in following ways:
- Gig employment allows part-time work and flexible working hours which allows women to balance their traditional roles (homemakers and care giver) with employment.
- Gig employment complemented by work-from-home (WFH) and technology has addressed the issue of safety during travel and night shifts. Also, new employment opportunities for women in tier 2 and 3 cities have emerged.
- It provides women with on-demand work allowing her join and drop-out of work force as per her own will.
- Gig employment helps women earn extra income, boosted her confidence and gives decision making power all of which are important component of women empowerment.
However, gig economy comes with its own set of constraints such as:
- Gig economy works purely on market principle of demand and supply. It views humans just as another resource. Easily replaceable low skill gig laborers are exploited by employers. There is also lack of certainty regarding availability of work and stability of career.
- Lack of benefits: Flexi-workers usually are not entitled to minimum wages, insurances, PF, retirement plans, paid leave, maternity benefits, etc.
- Pay difference: Permanent employees have a grade-pay plus benefits like travel allowance, etc. Gig workers are paid strictly as per the amount of work.
- Restricted growth: Low skill gig workers cannot move-up the organizational hierarchy and not considered for promotions.
In short term, gig economy can be a step towards increasing female labour force participation and women empowerment. But, in long run, predictable and formal employment with opportunities of upskilling is required.
Topics covered - Gig Economy, WTO, IMF
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FAQs on UPSC Mains Previous Year Questions: Gig Economy - Indian Society for UPSC CSE
| 1. What is the gig economy? |  |
Ans. The gig economy refers to a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent employment. It involves individuals working on a project basis or providing services on a flexible schedule, often facilitated through online platforms.
| 2. What are the advantages of the gig economy? | |
Ans. The gig economy offers several advantages, such as flexibility in terms of working hours and location. It allows individuals to choose the type of work they want to undertake and provides opportunities for multiple income streams. Additionally, it can enable individuals to develop a diverse skill set and gain exposure to various industries.
| 3. What are the challenges faced by gig economy workers? | |
Ans. Gig economy workers often face challenges such as lack of job security and benefits typically provided by traditional employment arrangements. They may also experience income volatility and difficulty in establishing a stable financial foundation. Furthermore, gig workers may have limited access to social protection and face challenges in building long-term careers.
| 4. How does the gig economy impact traditional employment? | |
Ans. The gig economy has the potential to disrupt traditional employment models by offering alternative work arrangements. It can lead to a shift in the labor market dynamics, with a greater emphasis on short-term contracts and freelancing. This may impact job security and stability in traditional employment sectors.
| 5. Are there any regulations in place for gig economy workers? | |
Ans. Regulations for gig economy workers vary across countries. Some jurisdictions have introduced measures to ensure gig workers receive certain benefits and protections, such as minimum wage guarantees, access to social security, and the right to collective bargaining. However, the regulatory framework for gig economy workers is still evolving in many parts of the world.
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