REALITYWIPE

RESEARCH_FILE

Jonathan Morduch

NYU Robert F. Wagner Graduate School of Public Service

Known for:Co-founding the U.S. Financial Diaries project and showing that income volatility, not just income level, drives financial stress

SEE THE PRACTICE

Turn a thought this research explains into one clear move.

THE THOUGHT

What if no one hires me next month?

YOUR RECORDED RESPONSE

A quiet week is a gap, not a prediction.

ONE PRIVATE MOVE

Spend five minutes gathering the last twelve months of invoices or deposits into one view, then mark three months that followed a slow spell. Keep it private; no editing, no decisions, just the record.

Key findings

  1. 2015

    With Anthony Hannagan, finds that financial-diaries households averaged 2.7 income spikes and 2.7 dips a year, each roughly half a typical month's income — and that job loss and job changes explained almost none of this volatility. Income Gains and Income Volatility: Household Evidence from the US Financial Diaries

  2. 2017

    With Rachel Schneider, documents in The Financial Diaries how families of all income levels cope with volatility through constant, largely invisible juggling of bills, borrowing, and savings — not through simply earning more. The Financial Diaries: How American Families Cope in a World of Uncertainty

  3. 2017

    Shows that for households above 150% of the poverty line, smoothing within-job income variability — the everyday spikes and dips — would cut episodes of poverty roughly in half, independent of any change in yearly average income. In and Out of Poverty: Episodic Poverty and Income Volatility in the U.S. Financial Diaries

Research areas

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