Does paycheck frequency matter? Evidence from micro data

• 成果类型: Article
• 署名作者: Baugh, Brian; Correia, Filipe
• 署名单位: University of Nebraska System; University of Nebraska Lincoln; University System of Georgia; University of Georgia
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.12.002
• 发表日期: 2022
• 页码: 1026-1042
• 关键词: Paycheck frequency; labor income; household debt; Financial distress

摘要

Using a unique dataset from an account aggregator, we analyze cross-sectional differences and within-household time-series variation in paycheck frequency. We find that higher paycheck frequency results in less credit card borrowing, less consumption, but more instances of financial distress - even when the change in paycheck frequency is employerinitiated. We find that pay frequency strongly determines within-month time patterns of financial distress. Our theoretical model reconciles these empirical results - higher paycheck frequency increases consumers' willingness to allocate to illiquid savings vehicles, leading to a reduction in both consumption and within-paycycle borrowing. (c) 2021 Elsevier B.V. All rights reserved.