Family income volatility has increased over the past three decades, though the trend for individual earnings volatility is less clear. Low-income households have more volatile incomes than do higher income households and this gap has grown over time. Job losses, reductions in employment hours, and loss of working adults in a household were the most common factors associated with large income drops. Additions in working adults and work hours, and increased wages were the most frequent causes of income increases.
The Evolution of Household Income Volatility