How Platform Based Work Contributes to the Racial Wealth Gap

Overview

Author: Shelly Steward (The Aspen Institute)

Platform work, or the use of apps, websites, or intermediaries to connect workers to tasks, is an increasingly common way of arranging work in the tech sector. Platforms weaken the relationship between workers and employers by acting as a mediator between them; workers interact with an impersonal interface rather than a supervisor. These arrangements provide workers with few career prospects, while offering low wages and few benefits. Existing estimates suggest workers of color are concentrated in these jobs. As such, platform-based work represents the latest iteration of a racial exclusion in the U.S. labor market, which holds workers of color from opportunities for career growth and wealth-building, contributing to the country’s persistent and substantial racial wealth gap. Solutions include policies aimed at improving platform work conditions, and alternative models of platform work, which hold potential to bring a more equitable future of work.