EPI Study: Income Instability a Growing Threat to American Families

More families than ever in modern times are facing economic instability because of erratic income patterns in recent years, according to a new study by the Economic Policy Institute.

"Where they might have expected to make a gradual but steady ascent up the income ladder, more Americans are finding themselves on an economic roller coaster," said study co-author Jacob Hacker. "Instead of being able to plan for their future, they're left worrying about when the next big dip is coming."

The study, "The Rising Instability of American Family Incomes, 1969-2004," documents indicators of growing income volatility.  For instance, the share of working-age people experiencing a loss of half or more of their household income rose from less than 4 percent in the early 1970s to nearly 10 percent in the 2000s.

Making the problem worse, income volatility is compounded today by dwindling health and pension coverage, job loss, rising household debt, bankruptcy and mortgage foreclosures, and the erosion of public benefits for American workers. Taken together, the authors write, "these long-term trends point to serious and growing threats to the economic security of American families."

The study is available online at www.epi.org.