Traditional and Nontraditional Earnings: Demographic, Financial, and Beneficiary Patterns

33 Pages Posted: 7 Mar 2023

See all articles by Kathryn Anne Edwards

Kathryn Anne Edwards

RAND Corporation - Pardee RAND Graduate School

Daniel Schwam

RAND Corporation

Date Written: March 2, 2023

Abstract

We use the 2014 and 2018 panels of the Survey of Income and Program Participation to create a schema of earnings that come from employee and non-employee sources. Traditional earnings are from a job or incorporated business, while nontraditional earnings are from an unincorporated business or other work arrangement. We then create a typology of workers based on their experience with traditional and nontraditional earnings, describe workers of each type along dimensions of demographics, financial well-being, and beneficiary status, and use regressions to identify key predictors of earnings sources. Among prime-age workers, we find that workers with nontraditional earnings vary significantly based on whether the nontraditional earnings were the only source of wage income or in conjunction with traditional earnings. Among older workers, we find that receipt of Social Security benefits is a key predictor of nontraditional earnings. We discuss both findings and their research and policy implications.

Keywords: nontraditional work, gig work, Social Security

JEL Classification: j18, j42, j22,

Suggested Citation

Edwards, Kathryn and Schwam, Daniel, Traditional and Nontraditional Earnings: Demographic, Financial, and Beneficiary Patterns (March 2, 2023). Available at SSRN: https://ssrn.com/abstract=4376531 or http://dx.doi.org/10.2139/ssrn.4376531

Kathryn Edwards (Contact Author)

RAND Corporation - Pardee RAND Graduate School ( email )

1776 Main Street
Santa Monica, CA 90401
United States

HOME PAGE: http://www.kathrynanneedwards.com

Daniel Schwam

RAND Corporation

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

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