Gig platforms can simply 'wait out' workers to slash wages, research reveals

Researchers from the Max Planck Institute for Intelligent Systems (MPI-IS), the Tübingen AI Center and Ellis Institute Tübingen have conducted a study that uncovers a mathematical strategy explaining how digital labor platforms can systematically suppress wages. The research, titled "Stochastic Wage Suppression on Gig Platforms and How to Organize Against It," develops a mathematical model motivated by digital labor markets, including crowdwork, ride-hailing and food delivery. It shows how a buyer that posts prices and can wait for workers to accept them may keep payments very low when some workers are willing to accept tasks at very low prices.