Bridging or Reinforcing Economic Inequality: Assessing the Gig Economy in Ghana

• In Event: Poster Session: International Political Economy 2 & APCG (African Politics)
  In Poster Session: Poster Session: APCG (African Politics)

Abstract

Research on the global gig economy has attracted mixed reactions from scholars and policymakers concerning their role and effect on employment opportunities in recipient countries, particularly developing economies in Sub-Saharan Africa. Proponents assert that this flexible on-demand work model in Sub-Saharan Africa creates jobs, addressing the high level of youth unemployment on the continent (Cieslik et al., 2022; Dinika, 2022). Even enabling people with disabilities and young women with children to participate in income-generating activities. Contrary to these optimistic findings and projections, some scholars argue that due to the underdeveloped ICT infrastructure and limited digital training skill programs in Sub-Saharan Africa, the gig economy has consequently done little to provide meaningful work for young people in Africa. Adding that, these gig jobs are often characterized by precarity, lack of bargaining power, burnout, and isolation. Hence, while there is optimism about the gig economy’s potential, empirical evidence on its impacts on developing economies like Ghana is limited. Empirical research is needed to assess if emerging global digital jobs and platforms are reducing economic disparity by providing new income opportunities or reinforcing this existing inequality.
Using Ghana as a case study, this paper examines the impact of global online gig work on incomes, fairness perceptions, and economic opportunities for first-degree holders in Accra. Ghana provides a useful case as internet access has rapidly expanded, with 69% of the population in 2021 having an online presence, an increase from 8% in 2010, and 80% of these users are between 15 and 29 years old. Moreover, despite Ghana’s economic growth, the country still has high youth unemployment, at around 32.8% (UNDP Ghana, 2023). The study adopts a snowball sampling technique to recruit participants in this hard-to-reach population. The study aims to conduct a total of 30 in-depth interviews with those working as freelancers on global gig platforms. Preliminary findings suggest that although young graduates are eager to earn income in foreign currencies by working online, inadequate access to international payment platforms like PayPal poses challenges. Workers report difficulties receiving payments owed, limiting the income and economic benefits of online freelancing. This financial accessibility issue, for instance, replicates broader global disparities, as gig workers in developing countries like Ghana face barriers to full participation in the global digital economy compared to the Global North. This paper argues that the lack of payment infrastructure inhibits job opportunities and living standards from converging across countries, reinforcing economic inequality.

Reference

Cieslik, K., Banya, R., & Vira, B. (2022). Offline contexts of online jobs: Platform drivers, decent work, and informality in Lagos, Nigeria. Development Policy Review, 40(4), e12595.

Dinika, A. A. T. (2022). Preparing African youths for the future of work: The case of Rwanda. Digital Policy Studies, 1(2), 47-64.

UNDP Ghana (2023). Vulnerability Assessment on the Threats of Violent Extremism and Radicalisation in Northern Regions of Ghana. Retrieved from https://www.undp.org/ghana

Author

• Daniel Assamah, Rutgers University