Low-income workers experience—by far—the most earnings and work hours instability

To assess the compensation of workers, it matters not only how much money they earn, but also the manner in which their pay is earned. That is to say, to earn $25,000, one worker may have reliable and consistent earnings and hours from a single employer, while another may have multiple employers, inconsistent work hours, and variable wages. While workers may desire some amount of flexibility in their work schedule and earnings, volatility itself can also be troublesome. In this piece, we document how volatile earnings and work hours are month-over-month for workers, and how this varies by workers’ income. We explore the financial consequences of volatility and several potential causes of volatility—whether the volatility is the worker’s own choice or driven by factors beyond the worker’s control, such as employers setting unpredictable work schedules.