Status, Stigma, and Survival: Exploring Social Factors Deterring Participation in India’s Informal Employment Sector

Abstract

Youth unemployment is an ongoing structural issue in India, especially among youth in transition in a labor market with scarce formal labor opportunities and an expanding array of informal labor opportunities. Gig labor or platform-based gig work, such as delivery or ridesharing or logistics services enabled by digital platforms, has become an increasingly important labor opportunity. Despite its ease of access and income-generating capacity, gig labor is often subject to the influence of social perceptions of occupational prestige or stigma. One psychological construct that may influence gig labor is status anxiety, \"a concern or apprehension experienced by individuals about their social status or position and their fear of status mobility or loss.\" This study aimed to investigate the relationship between status anxiety and willingness to participate in gig labor among unemployed youth. A quantitative cross-sectional survey research design was used with a sample size of 50 unemployed youth aged 19-25 years old. Status anxiety was measured using the Status Anxiety Scale by Ani Keshabyan, while willingness to participate in gig labor was measured using an adapted version of the Theory of Planned Behavior\'s Behavioral Intention Scale based on the theory proposed by Icek Ajzen. Both instruments showed excellent internal reliability with Cronbach\'s Alpha reliability coefficient of .977 for the Status Anxiety Scale and .971 for the Willingness to Participate in Platform-Based Gig Work Scale. The findings showed a significant negative correlation between status anxiety and the willingness to take part in platform-based gig work (? = -0.752, p < .001). Moreover, the model accounted for a considerable amount of variance between the variables (R² = .581; Adjusted R² = .573). These findings indicate that the higher the level of status anxiety, the lower the willingness to take part in gig economy employment. This research contributes to the literature by emphasizing the impact of social hierarchy and occupational stigma on the employment choices of the youth. Moreover, the research underscores the need to take into consideration the perceptions of status to enhance the participation of the youth in the emerging employment opportunities.

Introduction

India is facing a significant youth unemployment crisis, particularly among educated young people and students who often experience long periods of unemployment after completing their education. At the same time, the rapid growth of the gig economy, driven by digital platforms such as Swiggy, Zomato, Uber, and Blinkit, has created new employment opportunities. While these platforms offer flexible and accessible work, participation is influenced by more than economic necessity.

The study examines how status anxiety affects unemployed youths’ willingness to engage in platform-based gig work. Status anxiety refers to an individual’s concern about their social standing and the fear of losing prestige or respect. In societies that emphasize meritocracy and social comparison, employment is viewed not only as a source of income but also as an important marker of identity and social status. As a result, many young people may avoid jobs they perceive as low-status, even when such jobs provide income opportunities.

Research suggests that status anxiety is often heightened in unequal societies, where individuals are highly aware of differences in social prestige and success. Sociological theories indicate that career decisions are influenced not only by wages and job security but also by concerns about reputation, dignity, and social recognition. For young adults, early career choices play a critical role in shaping identity and future aspirations, making occupations perceived as low-status less attractive.

The gig economy provides several advantages, including low barriers to entry, flexible working hours, and opportunities for income generation. However, delivery and ride-hailing jobs are frequently associated with informal labor and lower occupational prestige. Consequently, social perceptions, peer influence, family expectations, and concerns about respectability may discourage educated youth from participating in gig work despite unemployment.

The literature review highlights that most studies examine either status anxiety or gig work separately. Research on status anxiety focuses on social hierarchy, inequality, and occupational prestige, while studies on gig work primarily explore flexibility, precarious employment, and lack of labor protections. There is limited research investigating how concerns about social status influence individuals’ willingness to engage in gig work, particularly in developing countries such as India.

Existing studies show that gig work often serves as a survival strategy for those lacking access to formal employment. However, sociological research also demonstrates that occupational stigma and perceptions of low-status work can discourage participation. Young people may avoid gig jobs because they conflict with educational aspirations, middle-class expectations, and desired career trajectories.

Overall, the study identifies a critical research gap by exploring the relationship between status anxiety and willingness to participate in platform-based gig work. It argues that understanding these psychological and social factors is essential for explaining labor market behavior among Indian youth and for assessing the future role of the gig economy in addressing unemployment.

Conclusion

This study aimed to examine the relationship of status anxiety to the willingness to engage in the gig economy among male unemployed youth/students in Lucknow, India. The study revealed that there is a significant negative relationship between the willingness to engage in the gig economy and status anxiety. Specifically, the study found that as the level of status anxiety increases, the willingness to engage in the gig economy decreases. The study revealed that the relationship between the willingness to engage in the gig economy and status anxiety is significant at 0.001 level. The relationship is negative as the beta value is -0.752. The study revealed that even though the main driver of engaging in the gig economy is the incentive to earn money, the psychological factor is as significant as the incentive in influencing the willingness to engage in the gig economy. By using Bourdieu’s theories of social and symbolic capital, as well as the theory of occupational stigma, the study provides evidence of how rigid social hierarchies and fear of loss of face impact people’s willingness to engage with the gig economy. What this means for policymakers, schools, and the gig economy is that reducing stigma, recognizing skills, and socially validating workers can increase participation. Strategies that seek to alleviate both the psychological and financial dimensions of work may prove more effective in getting young people to engage with the gig economy. This study provides more nuanced understanding of the Indian labor market because it demonstrates that social and mental health dimensions can play just as great a role as financial and structural dimensions. Future studies can improve on what has been done here by including more diverse populations and longitudinal designs that examine potential moderators like family and peer pressure. In short, addressing status anxiety and social perceptions is key to creating a more equitable and sustainable gig economy within India.

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Copyright

Copyright © 2026 Arpit Maurya, Dr. Chhaya Gupta. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.