Roy’s Model and Job Shifting Mechanisms in the Gig Economy: An Exploration of Food Delivery Personnel in Odisha

Abstract

This study investigates job-shifting patterns among delivery workers at Zomato and Swiggy using Roy’s self-selection model. It reveals that skilled workers transition from jobs with lower skill rewards to positions offering higher wages for their expertise. It also finds that these workers are attracted to jobs with greater wage dispersion, which better match their skill levels and provide enhanced earning potential. Primary data were collected from 1,243 delivery workers in five cities of Odisha—Sambalpur, Bhubaneswar, Rourkela, Cuttack and Berhampur—over various months of 2020, 2021 and 2022. The findings indicate that disparities in skill returns and wage levels significantly influence job transitions, with workers shifting to jobs that offer better financial rewards and align more closely with their expertise. This research underscores the importance of understanding how skill and wage disparities drive job movement to the gig economy, providing insights into labour market dynamics and the factors affecting job choice.

Keywords

Gig economy Roy’s model self-selection skilled workers wage dispersion delivery workers Zomato Swiggy

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