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The ‘Gig’ Economy and its Impact on Social Security

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This article aims to shed light on one crucial aspect of the ‘gig’ economy: the extent to which the new forms of work in this field undermine the pillars upon… Click to show full abstract

This article aims to shed light on one crucial aspect of the ‘gig’ economy: the extent to which the new forms of work in this field undermine the pillars upon which traditional Bismarckian systems of social security have been built. Focusing on Spain, three main issues are analysed. First, after considering the legal classification of this type of service provision and its implications, the scheme within the social security system that corresponds to the registration of the service providers is identified. Second, how registration and subsequent social security contributions affect the generosity of social benefits is clarified. In particular, attention is paid to both the risk of partial, or total, lack of, protection due to the absence of compulsory contributions and the low-level of contributions made by the self-employed. And third, the impact the development of the platform economy may have on the financing of social security and its future sustainability – given the current difficulties confronting the Spanish economy – is examined. Some recommendations relating to these three issues are outlined as concluding remarks.

Keywords: economy impact; gig economy; security; security gig; social security

Journal Title: European Journal of Social Security
Year Published: 2017

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