Over the last 24 months, Aspen EPIC conducted a deep dive on income volatility – exploring its impact on households and developing a cross-sector solutions framework for mitigating the problem. Through this process, it became clear that many of the solutions to income volatility could be tackled at the local level.

In engaging cross-sector groups in each city, Finance Forward drew real commitments from employers, financial institutions, community-based organizations, government agencies, and elected officials, providing a foundation for change that will better the financial lives of households struggling under impossibly difficult conditions.

Unstable employment and unpredictable scheduling are significant drivers of income volatility and employers play a huge role in determining the financial wellbeing of their employees.

The reality is that the statistics on income volatility and financial stability for households are grim. Data from the Pew Charitable Trusts shows us that the typical middle-income household is unprepared for a major economic shock and half of households self-describe as financially insecure. Research from the Urban Institute helps us understand how financially insecure households affect cities. Their findings are troubling, showing increases in evictions, homelessness, and disruptions in regular housing and utility payments which translates to decreased revenue in property and utilities sales taxes.

These trends, however, are not irreversible.

Read the full article on income volatility by Kiese Hansen at The Aspen Institute