[8] THE GIG ECONOMY AND ITS IMPACT ON THE LABOUR MARKET IN BANGALORE: AN EMPIRICAL INVESTIGATION OF EMPLOYMENT PATTERNS, WAGE DYNAMICS, AND WORKER WELFARE
How to Cite the Article: Gunasheela. C (2026). The Gig Economy and Its Impact on the Labour Market in Bangalore: An Empirical Investigation of Employment Patterns, Wage Dynamics, and Worker Welfare. International Journal of Multidisciplinary Research & Reviews, 5(6),71-88. https://doi.org/10.56815/ijmrr.v5i6.2026.71-88
Abstract
The rapid proliferation of digital platform technologies has catalysed the gig economy as a transformative force in India's urban labour markets. Bangalore, as the country's technology hub, presents a uniquely bifurcated context—hosting both globally competitive IT freelancing and large-scale low-wage logistics work—making it an ideal site for empirical investigation. This study examines the gig economy's multidimensional impact on Bangalore's labour market through primary survey data from 412 gig workers across six platform sectors, complemented by 80 traditional formal employee comparisons and 15 qualitative interviews. Employing a mixed-methods approach combining descriptive statistics, inferential tests, and multiple regression analysis, the study investigates income levels, social security coverage, job quality satisfaction, and employment displacement. Findings reveal that while gig work has expanded economic participation opportunities, it simultaneously perpetuates structural informality— characterised by income unpredictability, near-universal absence of statutory benefits, and constrained career advancement. Education level (Beta = 0.48), sector of engagement (Beta = 0.29), and weekly hours (Beta = 0.31) are the strongest income determinants (R² = 0.71). A persistent gender wage penalty (Beta = 0.09) is documented. The study concludes that adaptive regulatory frameworks, portable benefits architectures, and targeted up skilling programmes are essential to reconcile platform flexibility with worker welfare guarantees.
