FUTURE OF WORK IN THE GLOBAL SOUTH The Future of Work and Education for the Digital Age New Opportunities in the Platform Economy On-ramps to Formalization in the Global South By Gregory Randolph, Hernan Galperin and Lina Khan May 2019 FUTURE OF WORK IN THE GLOBAL SOUTH The Future of Work and Education for the Digital Age New Opportunities in the Platform Economy On-ramps to Formalization in the Global South By Gregory Randolph, Hernan Galperin and Lina Khan May 2019 Published in May 2019 by JustJobs Network Inc. Abstract Acknowledgments: As the platform economy expands at exponential requires a collaborative ‘co-regulation’ approach, rates, policymakers in the Global South have a with information-sharing between governments Gregory Randolph is Executive Vice President at JustJobs Network. unique opportunity to translate the aggregation and firms; updated systems of labor market data Hernan Galperin is a Research Associate Professor at the University of workers through digital platforms into a collection; development of context-appropriate of Southern California, where he is also Director of the Annenberg more formalized labor market – with both categories of employment; and proactive Research Network on International Communication (ARNIC). He opportunities for revenue collection and higher approaches to taxation and social protection is Principal Investigator for the Future of Work in the Global South quality employment. Realizing this opportunity provision. (FoWiGS) initiative. Lina Khan is a Research Project Manager at JustJobs Network. Challenge JustJobs Network colleague Bhavya Suri provided valuable research support. Platform economyi workers represent a growing are particularly important in the Global South, JustJobs Network and FoWiGS extend their gratitude to the share of the large informal workforce across the where researchers suggest that most of those International Development Research Centre for its generous Global South.1 Since 2016, the use of online labor engaged on a platform rely on it as their primary support for this work. has risen by about 31.6 percent worldwide.2 The income source11 – as opposed to a country like the expansion of platform economy work is driven not United States, where an estimated 90 percent of For more information visit www.justjobsnetwork.org only by global firms like Uber, which operates in platform workers are seeking only supplementary or write to us at [email protected] 83 countries,3 but also by companies homegrown income.12 Moreover, platform workers’ informal in the Global South. Ola, a ride-hailing service in status excludes them from employer-provided India, and GO-JEK, an app-based transportation benefits – leaving them to rely on universal social and service provider from Indonesia, each have protection programs that are especially weak approximately 1 million drivers.4,5 or inadequate in much of the Global South. In addition, researchers have found that platforms’ The meteoric growth of platform economy firms digital algorithms that track and evaluate worker reflects a profitable business model that scales performance are opaque, which limits workers’ up quickly by matching supply and demand with ability to understand metrics that affect future digital technology. Workers highlight flexibility work opportunities.13 and higher wages as major benefits,6,7,8 while earnings volatility and long working hours are Yet platforms present a unique opportunity that among their greatest concerns.9,10 These tradeoffs is often missed in policy debates. In developing i We define platform economy workers as those who are contracted for tasks or projects through digital transactions. This includes on-demand workers who Photo by Noel Tock, www.noeltock.com. Some rights reserved. deliver services in a physical location, such as transportation, and workers who provide freelance services remotely. New Opportunities in the Platform Economy : On-ramps to Formalization in the Global South JustJobs Network 5 country labor markets, transportation and formalization. Platforms such as UrbanClap in concerned that governments may send blanket data in Washington, D.C., which will be used to service provision sectors generally operate India and Rappi in Latin America create an access requests for large volumes of data.19,20 Consumers establish data standards for curbs, traffic speeds, in disaggregated, decentralized and informal point for governments to raise revenue and may be concerned about the privacy of their and transit points.27 The ride-hailing platform ways.14 Platform economy firms pool together provide protections to informal workers. However, personal data. And governments, especially in the also disclosed information on 14 million users to large groups of workers that may have otherwise policymakers need more comprehensive Global South, worry that compelling companies to state and local regulators and law enforcement worked as disconnected self-employed information about platform employment and release data could generate negative perceptions agencies in the United States and Canada in 2017. individuals. Governments should view this effective working relationships with firms in order of their business climates.21 28,29 aggregation as a first step or “on-ramp” toward to harness this opportunity. However, given the importance of data for While most of these examples come from the effective public policy, some countries, states and Global North, data governance is becoming a cities have begun to take decisive action. Milan, mainstream public policy issue in the South as Proposal Italy, permits hosts on Airbnb to rent out their well. For example, the recently passed Brazilian homes on the condition that Airbnb cooperates General Data Protection Law outlines parameters with data requests by the government.22 In 2016, for consumers, companies (including platforms) The recommendations outlined below focus, 1. Forge data-sharing agreements with China launched a regulatory standard for ride- that collect personal data, and the government.30 first, on improving policymakers’ access to data platform firms hailing taxis requiring digital platforms to apply While the law is not specific to platform firms, its on platform economy work and, second, on Without a comprehensive understanding of for a permit and register network service records broader aim should be a guide for governments using that information to design integrated working hours, earnings, occupational safety and with authorities.23 The California Public Utilities forging data-sharing arrangements or designing systems of taxation and social protection health, and social dialogue mechanisms in the Commission fined Uber US$ 7.6 million for not data policies for the platform economy. Data- and develop appropriate legal definitions of platform economy, policymakers lack the capacity complying with its reporting sharing agreements platform services and workers. We argue that to design appropriate policies that maximize the requirements about accessible Data-sharing agreements should ensure the these aims can be achieved through principles platform economy’s social benefit. As a result, cars and the number of rides for the platform economy appropriate use of of ‘co-regulation’ – which would support multi- government responses are often reactive and requested and accepted per ZIP should support the use of data for policymaking, stakeholder collaboration in place of reactive court-based, attempting to force-fit platforms code.24 New York City has gone so data for policymaking, maintain consumer policy decisions.15 into preexisting regulatory frameworks. More far as to require app-based services maintain consumer privacy, privacy, and protect or information is required to harness the productive While the interests of different stakeholders may to apply for licenses, giving it data and protect fair competition avoid major threats to power of platforms to create employment while be perceived as conflicting, in reality all those collection capabilities.25 fair competition in the ensuring that the opportunity for formalization is in the private sector. involved – workers, governments, and firms – private sector. not squandered. In other cases, governments have an interest in maintaining the growth of have proposed voluntary or collaborative An additional benefit of data-sharing between the platform economy while ensuring that social Platforms already collect and store essential data arrangements. In France and Belgium, platforms platform firms and governments is that the latter and economic benefits accrue to workers and about operations, customers, workers, and worker opt into a graded tax system and governments could act as a neutral repository for data from their families. Firms in particular ought to see performance, but the data is mostly proprietary, relay platform revenue information directly to multiple platforms. This approach could build on the value in a proactive, collaborative approach limiting its public use.16,17 Data-sharing by ride- tax authorities.26 In the United States, under data portability efforts such as those embedded in to regulation, which gives them more ability to hailing platforms in the past has been less than the National Association of City Transportation Brazil’s new policy, which aim to have companies shape policy. transparent.18 Platform companies express Officials data-sharing project called SharedStreets, store data in a structured, transferrable way.31 reluctance to share data publicly because they