New Age Informality: Hispanics and the Sharing Economy

Abstract

The purpose of this study is to advance understanding of the Hispanic contribution to the engagement and production of the sharing and informal economies in the US. The study is situated within the domains of the sharing economy and informality within a broader frame of entrepreneurship. Specifically, Hispanic participation rates, rationale for engagement, and the major drivers of involvement in the production of the sharing and informal economies are analyzed. To evaluate this, data are reported from a nationally representative subsample of Hispanics derived from the US Federal Reserve Board’s Enterprising and Informal Work Activities Survey (EIWA) conducted in the late fall of 2015. The finding is that more than one-third of Hispanics engage in EIWA. Hispanics participate in EIWA primarily as a means to earn extra income or as a key avenue to earn a living. By choice, relatively affluent Hispanics have the largest stake in sharing and informal economies. However, it is the lowest income Hispanics that engage in EIWA out of necessity. The major drivers of EIWA participation among Hispanics are revealed. This is the first known study with a nationally representative sample of Hispanics focused on participation rates, rationale for engagement, and drivers of involvement in the production of new age sharing and informal economies.