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 exible 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: SAFE Working Paper ; No. 207

Classification and Topics

• Classification: Wirtschaft
• Subject: Multi-level marketing ; Alternative work ; Consumer nancial protection

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bäckman, Claes ; Hanspal, Tobin
• Event: Veröffentlichung
• (who): Goethe University Frankfurt, SAFE - Sustainable Architecture for Finance in Europe
• (where): Frankfurt a. M.
• (when): 2019

Further information

• DOI: doi:10.2139/ssrn.3175871
• Handle: http://hdl.handle.net/10419/203317
• Last update: 10.03.2025, 11:42 AM CET