The gig economy is paying off for workers who are already among America’s highest earners.
More people who were among the top 20% of income earners made money from digital platforms such as Uber and Airbnb than lower-income workers, according to new data from the JPMorgan Chase Institute.
An estimated 1.63 million people who were top earners made at least some of their income from online gigs between October 2014 and September 2015. That’s about 150,000 more gig earners than among bottom 20% of the income distribution.
The finding complicates the view that the gig economy can help close the income inequality gap.
Some economists reason that flexible work arrangements mainly powered by smart phones allow lower-income workers to more easily find work that fits their schedule and abilities. While that may be true, the institute data suggests wealthier Americans benefit from the gig economy’s ability to generate more income from their assets.
Of top income earners who did participate in the gig economy, 82% did so by renting an asset like a house or selling products they made or already owned. They did so through systems such as the rental-platform VRBO or craft-merchandising sites like Etsy. Owning a vacation home and operating a small, online business requires a certain level of investment that may be out of reach for some lower-income earners, said Diana Farrell, chief executive of the institute.
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