Despite the tremendous growth in participation in the Online Platform Economy—a fold increase over three years—these online "gigs" remained a secondary source of income for most people.
We value your feedback
In months when individuals earned platform income, labor platforms, such as Uber or TaskRabbit where individuals perform discrete tasks or assignments, contributed 33 percent of total monthly income, and capital platforms, such as eBay or Airbnb where individuals widgets for binary options goods or rent assets, contributed 20 percent of total monthly income. We find that the Online Platform Economy contributed significantly to the bottom line for certain segments of the population, notably labor platform participants in general, and specifically labor platform earners who live in San Francisco, or who are 35 and older or have low-to-moderate incomes.
Among these segments, platform earnings represented, on average, more online earnings contribution a fourth of their income over a month span. To shed light on who earns the most from online platforms, we drew on our anonymized sample of overcore Chase checking account customers who earned income on at least one of 30 platforms—the largest sample of platform earners online earnings contribution to date.
Here we focus on theindividuals who participated over the twelve month period between October and September During this span, 3. West Coast cities are the epicenter of the Online Platform Economy, with San Francisco topping the charts for both participation in and reliance on online labor "gigs".
In San Francisco, where many of the largest online platform companies are headquartered, 5. Across all metropolitan areas more make money on the Internet from the first day earned income from capital platforms than labor platforms, and very few people—less than 3 percent of participants—earned income from both labor and capital platforms.
There is wide dispersion in the rates of participation in labor platforms across the 15 cities in Figure 1.
Equity In QuickBooks Online Explained
Participation in labor platforms ranged from a high of 2. A number of factors likely contributed to this dispersion, including the timing of when platform companies entered each market, regulatory efforts in response to their growth, and local labor market and price conditions. In contrast to labor platforms, there was less variation in the rate of participation in capital platforms across cities—participation rates ranged from a high of 3. View the Text Version View Infographic Version close infographic modal button Figure 1: Percentage of adults who earned income from the Online Platform Economy over the past 12 months, by metropolitan area as of September View the Text Version View Infographic Version Platform earnings were a secondary source of income for established participants online earnings contribution all 15 cities and the nation as a whole, representing 26 percent of annual income for labor platform participants and 11 percent of annual income for capital platform participants Figure 2.
We study the reliance of this group of participants in order to observe a full month period in which platform income could contribute to a participant's income. Given the rapid growth of online platforms and geographic differences in the availability of some platforms over time, established platform participants provide a more steady-state view of the contribution platform earnings made to total income.
Among all platform earners, including individuals online earnings contribution began participating during the most recent year, platform earnings represented 14 percent of total income for labor platform participants and 6 percent of income for capital platform participants.
This degree of reliance was about nine percentage points higher than the national average and 20 percentage points higher than the city with the least reliant participants, Detroit. Capital platform participants in San Diego, Phoenix, Denver and Miami were most reliant on their platform earnings, which represented more than 12 percent of total income for the year, compared to a national average of 11 percent and seven percent in Columbus, Ohio.
Millennials were most likely to earn income from the Online Platform Economy, but they were the least reliant on platform earnings across age groups. More than five percent of Millennials those ages earned income from the Online Platform Economy over these 12 months, compared to a national average of 3.
Class 2 contributions
This age gap in participation existed for both types of platforms. Compared to adults ages 65 and older, year olds were roughly nine-fold more likely to earn income on labor platforms and five-fold more likely to earn income on capital platforms. View the Text Version View Infographic Version close infographic modal button Figure 3: Percentage of adults who earned income from the Online Platform Economy over the past 12 months, by age as of September View the Text Version View Infographic Version Although young people were more likely to participate in the Online Platform Economy, they were the least reliant on platform earnings compared to older earners Figure 4.
Labor platform earnings represented about 23 percent of total annual income for participants age compared to more than 28 percent of total earnings for individuals age 45 and older. Similarly, capital platform earnings represented about nine percent of total annual earnings for participants agedbut more than 11 percent for all other participants. This suggests that while much of the attention paid to the "gig economy" has focused on Millennials, online platforms might, in fact, be a more important source of income for other age groups, including retirees and individuals with families.
The contributions determine whether or not a writer will qualify for health coverage in a given year or yearsand also determine retirement options once a writer vests. What we have been doing The PWGA is required to send a statement of earnings and pension contributions once every three years.