GIG ECONOMY CONTRIBUTION BY GENERATION Z TO REGIONAL ECONOMY: A STUDY IN BANYUMAS REGENCY

Abstract

The rapid growth of the gig economy driven by digital platform expansion has created new employment opportunities, particularly for Generation Z facing structural unemployment challenges in Indonesia. However, empirical evidence on gig economy contributions at the non-metropolitan district level remains scarce. This study analyzes the contribution of gig economy activities by Generation Z to the regional economy of Banyumas Regency, Central Java, by examining the relationships between gig activity intensity, individual income, and local consumption expenditure. Using a quantitative explanatory approach, primary data were collected from 385 Generation Z gig workers in Banyumas Regency through structured questionnaire surveys using Simple Random Sampling in May 2026. Two regression models were employed: multiple log-linear regression (Model 1) to examine the effects of working hours, platform tenure, platform type, and education level on income; and simple log-log regression (Model 2) to analyze the effect of income on local consumption expenditure as an indicator of regional economic contribution. The study is theoretically grounded in Dual Labour Market Theory, Human Capital Theory, Labour Supply Theory, and Keynesian Consumption Theory. Findings reveal that Model 1 achieves Adjusted R² = 0.867, with working hours as the dominant determinant (β = 1.540, p < 0.001), followed by platform type (β = 0.457), platform tenure (β = 0.250), and education level (β = 0.101). Model 2 yields R² = 0.940 with an income elasticity of consumption of 0.873, confirming that gig economy income significantly stimulates local consumption, thereby contributing to the regional economic cycle of Banyumas Regency. These findings provide evidence for local governments to strengthen policies supporting digital labor and platform-based employment as drivers of regional economic development.