Human Capital and Vulnerability Among Young Gig Workers in Indonesia
Keywords:
GIG workers young workers human capital job vulnerability logistic regressionAbstract
The rapid expansion of digital technology, intensified by the COVID-19 pandemic, has increased the number of gig workers in Indonesia, particularly youth aged 15–29. Although the gig economy offers flexible earning opportunities, concerns persist regarding income insecurity. This study investigates the determinants of income vulnerability among young gig workers using logistic regression applied to the 2023 National Labor Force Survey (SAKERNAS). Vulnerability is defined as earnings below the provincial minimum wage (UMP), the binary dependent variable is coded as 1 = non-vulnerable (income ≥ UMP) and 0 = vulnerable (income < UMP). Results show that higher educational attainment is associated with lower vulnerability in urban areas, but no significant effect is found in rural settings. Participation in training programs does not significantly reduce vulnerability across all models. These findings indicate that structural and institutional conditions mediate the returns to human capital within platform-based labor markets. Urban–rural disparities suggest that returns to education depend on market characteristics such as platform penetration, digital infrastructure, and demand density. The limited effect of training highlights misalignment between current interventions and the skills needed for higher-value tasks. Policy efforts should combine targeted upskilling, improved relevance of vocational training, and investments in rural digital infrastructure, alongside broader reforms related to minimum income standards, algorithmic transparency, and portable social protection. Overall, this study underscores the limited role of human capital in mitigating precarity and highlights the importance of structural interventions in platform labor markets.
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