The Marketization of Work Relations By Online Labor Platforms in Japan – the Case of the Expansion of Company a –

The expansion of online labor platforms (OLPs), which profit by matching labor supply and demand, has been gaining momentum in Japan. OLPs were said to be established as a way to liberate labor from organizational control, promising better work-life balance than organizational employment. This paper argues, from an institutional perspective, that the growth of the OLPs is accelerating the further marketization of work relations. The study illustrates a facet of this marketization process using data from Company A, one such OLP.

Company A, a rapidly expanding OLP over the past few years, differs from many other platforms in that it views itself as a labor market actor (a licensed employment agency), with most of its transactions involving formal employment rather than contracting. For this study, data was collected from 500 randomly selected registered users who completed transactions on the platform between 2018 and 2024. The data includes more than 10,000 transactions conducted by these users during the same period. The analysis focuses on four key aspects of the marketization of work relations: the range of options available to sellers and buyers, the flexibility of procurement from the perspective of employers, job stability from the perspective of workers, and wage levels.

The findings show that sellers and buyers have unbiased options on the platform, with no strong algorithmic restrictions. Employers enjoy high flexibility in sourcing labor when needed. Workers, however, often engage in same-day applications and shifts, indicating that while flexibility is high, job stability may be at risk. Wages tend to cluster slightly above the minimum wage, suggesting downward pressure, though minimum wage regulations are still effective.

In conclusion, although this case study is limited to Company A, it shows clear signs of labor marketization regarding flexibility, with wage regulations still providing some stability.