Financial Vulnerability, Resilience, and Willingness to Pay for Social Protection Schemes Among Gig Workers: Empirical Evidence from Malaysia

Abstract

This study aims to identify the financial dynamics of gig workers in Malaysia, focusing on their financial vulnerability, resilience, and willingness to pay for social protection schemes. Employing logit analysis, the study analyzed responses from 452 gig workers across Malaysia using a structured questionnaire. The findings reveal that income, education, and being a full-time gig worker emerged as pivotal factors influencing short-term financial vulnerability, shedding light on the disparities within this workforce segment. Even though most can meet their basic needs, some gig workers may lack resilience toward financial and social shocks. Besides income, financial resilience was closely tied to financial literacy, emphasizing the role of financial education in enhancing economic stability. The willingness to pay for social protection was closely linked to one’s financial circumstances and literacy level, highlighting the necessity for personalized social protection strategies tailored to the unique needs of gig workers.