Internet Access and Independent Contracting Through the 2010s: A Varied Tale How Uptake and Returns Differ Across Demographics, Income Levels, and Time

The internet led to the proliferation of platforms that connect workers to individuals and firms seeking assistance and significantly increased independent contractor rates across the income and skill spectrum. Consequently, communities that adopted the internet earlier or at higher rates may have higher rates of contracting. Using data from the FCC on mobile and broadband internet rates, I examine their relationship with business earnings reported to the IRS from 2010 to 2019. Local race and ethnicity characteristics interact with internet measures and show that counties with higher minority concentrations have a higher correlation between internet expansion and growth in independent contractors. However, they do not reap as high growth rates in contractor earnings as predominantly white counties. Further, results show the relationship between growth in independent contractor earnings shifts mid-decade, with declines in growth observed post-internet expansion in the latter half of the 2010s.