Economic Security for Low-Income Working Families

The economic well-being of low-income families is affected by sudden and unpredictable events such as illness or job losses. One goal of the Low-Income Working Families project is to document the experiences of low-income working families and examine the factors that contribute to the economic security of these families.

Risk and Volatility: Income Changes among Working Families with Children

"Risk and Recovery: Understanding the Changing Risks to Family Incomes," a brief funded by the Annie E. Casey Foundation and the John D. and Catherine T. MacArthur Foundation, examines the likelihood that non-elderly individuals in families with children experience a substantial drop in family income over four-month periods and the likelihood that their family income would later return to pre-decline levels.

The paper, "Disability Onset among Working Parents: Earnings Drops, Compensating Income Sources and Health Insurance Coverage," focuses on incomes losses associated with work-limiting disability using the 1996 and 2001 panels of the Survey of Income and Program Participation. The paper found that nearly 10 percent of employed parents developed or had a recurring disability over the course of the panel and for about a quarter of this group, earnings dropped by more than 25 percent of family income, with other income sources offsetting only a small fraction of lost earnings.

The Role of Assets and Health on Income Volatility

While unpredicted household events such as becoming disabled and changes in household composition can directly affect household income, the impact of these events on household consumption and overall material well-being may be mitigated if the household holds assets. Boosting assets enables individuals and households to invest in life goals and to enhance long-term economic stability and social protections. The fact sheet, "A Quick Look at U.S. Households and Their Assets," drawn from Asset Building and Low-Income Families, by Signe-Mary McKernan and Michael Sherraden, presents an array of key statistics.