Labor in the digital age: Platformization’s uneven impact in developed and developing economies

This study analyzes the heterogeneous labor market effects of digital infrastructure across 134 countries (2010–2022) using first-differenced fixed-effects panel models. Results show that in low-income economies, internet access significantly increases labor force participation but simultaneously reduces formal service employment, indicating substitution toward informal or gig work. No comparable effects are found in high-income countries, underscoring asymmetric digital transitions. These findings suggest that digital access without institutional safeguards may intensify labor precarity rather than promote inclusion. While consistent with the dual-channel hypothesis of participation and substitution, the results remain correlational, not causal.