Income Volatility and Low-Income Households
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.