Determinants of Demand in Digital Platform-Mediated Service Work in Turkey: An Empirical Study

Abstract

Despite claims that digital platform-mediated jobs may have negative consequences for the labor market, empirical evidence supports the existence of positive effects, especially for low-paid and low-skilled service jobs. Comparative studies on the characteristics, working conditions, and earnings of workers who perform these jobs on digital platforms are becoming widespread. However, there needs to be more literature regarding the demand side of digital platform-mediated service jobs. This study aims to determine the factors affecting the demand for digital platform-mediated services using a dataset obtained from a comprehensive survey conducted by Turkish Statistical Institute (TurkStat) throughout Turkey. The study uses the probit econometric model with a qualitative dependent variable. The results show that the income level of the individuals, the characteristics of the region where they live, and the familiarity of individuals with digital platforms significantly affect the demand for digital platform-mediated services. The findings demonstrate that specifically middle-income individuals, compared to individuals in other income groups, individuals residing in areas with high population density, compared to individuals in other regions, and individuals with Internet familiarity, compared to other individuals, exhibit a higher demand for digital platform-mediated services.