Paper Number
1663
Paper Type
Complete Research Paper
Abstract
An increasing number of individuals are working as online freelancers. However, the turnover on digital labor platforms is high. While turnover in the offline labor market has been extensively researched, it remains unclear how it works on digital platforms and what factors influence freelancers' exit decisions. Nevertheless, this is important to investigate because digital platforms function as markets with platform-specific aspects such as reputation systems. Therefore, we conducted a logistic regression of 29,437 online freelancers and investigated different antecedents. We found that greater platform success leads to less platform exit. Investment in the platform also leads to less platform exit and positively moderates the relationship between success and exit. In addition, we obtained mixed results regarding the ease of platform exit. Average income in the offline labor market is positively related to platform exit, while using the platform as a secondary income has a negative impact on platform exit.
Recommended Citation
Schned, Lisa; Gussek, Lisa; and Wiesche, Manuel, "Turnover in the Gig Economy: A Quantitative Analysis of Digital Labor Platform Exit" (2024). ECIS 2024 Proceedings. 6.
https://aisel.aisnet.org/ecis2024/track01_peoplefirst/track01_peoplefirst/6
Turnover in the Gig Economy: A Quantitative Analysis of Digital Labor Platform Exit
An increasing number of individuals are working as online freelancers. However, the turnover on digital labor platforms is high. While turnover in the offline labor market has been extensively researched, it remains unclear how it works on digital platforms and what factors influence freelancers' exit decisions. Nevertheless, this is important to investigate because digital platforms function as markets with platform-specific aspects such as reputation systems. Therefore, we conducted a logistic regression of 29,437 online freelancers and investigated different antecedents. We found that greater platform success leads to less platform exit. Investment in the platform also leads to less platform exit and positively moderates the relationship between success and exit. In addition, we obtained mixed results regarding the ease of platform exit. Average income in the offline labor market is positively related to platform exit, while using the platform as a secondary income has a negative impact on platform exit.
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