Evaluating the impact of income volatility benefits on gig workers

Gig workers account for approximately 25 to 35% of the national workforce. When considering workers earning low to moderate incomes (LMI), these percentages are likely higher. Gig work provides reported advantages including flexibility, supplemental income, and independence. However, it also brings unique financial challenges such as complicated taxes, low and unpredictable wages, and difficulty accessing benefits. Due to these barriers to financial security, gig workers are often unable to build an emergency savings reserve.

Commonwealth launched the Financial Benefits Project pre-pilot to further explore the financial needs of gig workers and to outline recommendations for employer benefits that reduce the impact of income volatility. In combination with schedule stability and predictable wages, income volatility benefits have the potential to help workers earning LMI manage from day to day, particularly given the reduction of COVID-19 supports.

Across two cohorts, Commonwealth evaluated the impact of three interventions on financial hardships for 138 gig workers enrolled in the project. Participants were eligible for up to $1,000 in funds over a four-month period through weekly stipends, emergency grants, and emergency loans. 



Economic impact of COVID-19 among visible minority groups

Since visible minorities often have more precarious employment and higher poverty rates than the White population, their ability to adjust to income losses due to work interruptions is likely more limited. Based on a large crowdsourcing data collection initiative, this study examines the economic impact of the COVID-19 pandemic on visible minority groups.

Among the crowdsourcing participants who were employed prior to work stoppages, Whites and most visible minority groups reported similar rates of job loss or reduced work hours. However, visible minority participants were more likely than White participants to report that the COVID-19 pandemic had affected their ability to meet financial obligations or essential needs, such as rent or mortgage payments, utilities, and groceries.



Income Volatility: Why it Destabilizes Working Families and How Philanthropy Can Make a Difference

As the work environment has evolved and jobs look more different, it is important to understand the impact of these changes on income—predictability, variability, and frequency—and how this affects the opportunity for mobility. Because of the complexity of income volatility, there is a unique role for philanthropy.

This brief helps grantmakers understand the enormous challenges income volatility presents in America and provides an array of strategies for philanthropy to leverage both investments and leadership to empower families to protect themselves from volatility’s worst effects.



Inequality in the feasibility of working from home during and after COVID-19

The economic lockdown to stop the spread of COVID-19 has led to steep declines in employment and hours worked for many Canadians. For workers in essential services, in jobs that can be done with proper physical distancing measures or in jobs that can be done from home, the likelihood of experiencing a work interruption during the pandemic is lower than for other workers.

To shed light on these issues, this article assesses how the feasibility of working from home varies across Canadian families. It also considers the implications of these differences for family earnings inequality.



Canadian Perspectives Survey Series 1: Impacts of COVID-19 on job security and personal finances, 2020

Findings from a web panel survey developed by Statistics Canada on how Canadians are coping with COVID-19. More than 4,600 people in the 10 provinces responded to this survey from March 29 to April 3. In addition to content on the concerns of Canadians and the precautions they took to reduce the risk of exposure to COVID-19, the survey includes questions on work location, perceptions of job security, and the impact of COVID-19 on financial security.



A workplace-based economic response to COVID-19

This brief emerged from a conversation, held in late March 2020, among a number of individuals and organizations who work on issues of household financial security. Employers with financial resources and governments have an opportunity to use the workplace as a significant channel to deliver financial relief as part of the economic response to COVID-19, complementing critical supports governments are providing to individuals and businesses. 



Working Without a Net: Rethinking Canada’s social policy in the new age of work

This report explores the implications of new technologies on Canada’s economy and labour market and the adequacy of current social programs and policies supporting workers.



Redesigning Social Policy for the 21st Century

In this video presentation Sunil Johal from the Mowat Centre explains how social policy in the 21st century could be redesigned to accommodate the changing nature of work and income in Canada.  

This presentation was given at the Prosper Canada Policy Research Symposium on March 9, 2018.

Read the slide deck that accompanies this presentation.

Pour lire les diapositives de la présentation, cliquez ici.

View the full video playlist of all presentations from this symposium.



Income volatility: Strategies for helping families reduce or manage it

In this video presentation David Mitchell from the Aspen Institute explains strategies for mitigating and preventing income volatility at the household level.  

This presentation was given at the Prosper Canada Policy Research Symposium on March 9, 2018.

Read the slide deck that accompanies this presentation.

View the full video playlist of all presentations from this symposium.



Up Close and Personal: Findings from the U.S. Financial Diaries

In this video presentation Rob Levy from the Center for Financial Services Innovation (CFSI) shares some of the findings from the U.S. Financial Diaries project. He explains how the households in the study experience multiple "spikes" and "dips" in income and spending over the course of a single year.

This presentation was given at the Prosper Canada Policy Research Symposium on March 9, 2018.

Read the slide deck that accompanies this presentation.

Pour lire les diapositives de la présentation, cliquez ici.

View the full video playlist of all presentations from this symposium.



Income volatility: What banking data can tell us, if we ask

In this video presentation Fiona Greig from the JP Morgan Chase Institute explains what banking data can tell us about income volatility in the United States.  

This presentation was given at the Prosper Canada Policy Research Symposium on March 9, 2018.

Read the slide deck that accompanies this presentation.

Pour lire les diapositives de la présentation, cliquez ici.

View the full video playlist of all presentations from this symposium.



Gig Workers in America: Profiles, Mindset and Financial Wellness


The Gig Worker On-Demand Economy survey was conducted online by Harris Poll on behalf of Prudential from January 5 to February 18, 2017, among a nationally representative (U.S.) sample of 1,491 workers including 514 full-time and 256 part-time traditional employees and 721 gig workers. Gig work was defined as providing a service or labor, and did not include renting out assets. Survey respondents were selected from among adults aged 18+ who had agreed to participate in online surveys from the Harris Poll Online panel and preferred sample partners.