Quotation Bäckman, Claes, Hanspal, Tobin. 2019. Participation and Losses in Multi-Level Marketing: Evidence from an FTC Settlement.


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Abstract

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.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Participation and Losses in Multi-Level Marketing: Evidence from an FTC Settlement
Year 2019
URL https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3175871

Associations

People
Hanspal, Tobin (Details)
External
Bäckman, Claes (Lund University, Sweden)
Organization
Institute for Finance, Banking and Insurance IN (Details)
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