Gig Workers, Financial Resilience and Financial Literacy in Supporting Decent Work and Economic Inclusion

Universitas Muhammadiyah Magelang, Magelang, Indonesia

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Abstract

This study aims to analyze the effects of gig work characteristics and financial literacy on financial resilience among young gig workers in Magelang, Indonesia to supporting decent work and economic inclusion. The increasing prevalence of gig work, characterized by income volatility and flexible work arrangements, highlights the need to understand the factors that strengthen workers’ ability to withstand financial pressure. Financial resilience is therefore an essential capability for gig workers who frequently face unstable economic conditions. A quantitative research design was employed using a survey distributed to 173 respondents from Generations Y and Z engaged in various gig economy activities in Magelang. Respondents were selected through purposive sampling. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM PLS) to examine the relationships among the studied variables. The results indicate that financial literacy has a positive and significant effect on financial resilience, whereas gig work characteristics do not significantly influence financial resilience. These findings suggest that the ability of young gig workers to make informed financial decisions plays a more critical role in strengthening financial resilience than the structural nature of gig work itself. The implications of this study emphasize the importance of promoting structured and accessible financial literacy programs tailored to the needs of young gig workers. Policymakers and local governments may utilize these insights to design community based financial education initiatives and develop more responsive socioeconomic protection strategies for gig workers. The study also contributes to the development of a contextual financial resilience framework relevant to the Indonesian gig economy.