Technological unemployment and the business model of sharing economy in conditions of digitalized economy

Abstract

The article traces the impact of innovation on employment and workers income during industrial revolutions. The aim of the study is to identify the business model that contributes to improving the well-being and reducing negative impact of innovative transformations on employees. To achieve this goal, we analyze: the conceptions of industrial revolutions; the “Engels pause”, which arose during the First Industrial Revolution as a “surge” in inequality due to the contradiction between productivity growth and profit, on the one hand, and the stagnation of workers’ real incomes, on the other; the effect of replacing manual labor with automated one; the problems of technological unemployment; the digital business model of sharing economy. The findings report conclusions concerning the change in economic development paradigm as a result of the replacement of classical consumption models by sharing economy business model, on the prospects of the sharing economy business model in the context of its ability to solve employment problems, overcome technological unemployment and increase employees’ income. The achieved results can be useful for policymakers and corporate structures that design innovative development strategies.