The detrimental link between income volatility and financial capability
A growing number of Canadians are employed in situations that may feature more volatility in their incomes than previous generations. This report sheds new light on the linkage between that volatility and one’s financial capability.
Canada’s labour market is changing at a rapid pace. Standard employment arrangements, such as full-year, full-time work are increasingly giving way to more temporary arrangements, such as part-time, contract, and “gig” work. This has meant more volatility in hours and income for a growing number of Canadians which, in turn, has serious implications for financial literacy and capability.
Does the presence of income volatility act as a barrier to Canadians’ ability to practice good financial behaviour?
In our second report of our three-part research series, we investigate this linkage and shed new light on this budding area of research for the first time in a Canadian context.