Social Sciences Brown Bag Seminar

Abstract: We analyze how predictable variation in the timing of income affects household financial health. Exploiting quasi-random variation in the disbursement of benefits by the Social Security Administration, we document that households are more likely to face financial shortfalls during 35-day versus 28-day pay periods. Households are also more likely to experience shortfalls if they have a greater mismatch between the timing of income and expenditure commitments. The results suggest that policies and technologies that help consumers align the timing of their income and expenditure streams would improve financial health.

Written with Brian Baugh.