Participation and Losses in Multi-Level Marketing: Evidence from an FTC Settlement

Arbeitspapier

More than 20 million Americans are affiliated with Multi-Level Marketing firms (MLMs), but there is little empirical evidence on who participates in this controversial part of today's labor market. We link data on 350,000 individuals cited in an FTC settlement with one of the largest MLMs to detailed county-level information. We find that participation is greater in areas with higher median income and where women are absent from the labor market, suggesting value in flexible work. However, losses are correlated with higher inequality and lower social capital, suggesting that the pitfalls accrue to vulnerable groups.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2018:13

Classification and Topics

• Classification: Wirtschaft ; Labor Force and Employment, Size, and Structure ; Time Allocation and Labor Supply ; Entrepreneurship
• Subject: Multi-level marketing ; Alternative work ; Consumer financial protection

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bäckman, Claes ; Hanspal, Tobin
• Event: Veröffentlichung
• (who): Lund University, School of Economics and Management, Department of Economics
• (where): Lund
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/260242
• Last update: 10.03.2025, 11:43 AM CET