Presentation Asset Poverty and the Importance of Emergency Savings
Caroline Ratcliffe
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What percent of families are asset poor-lack sufficient resources to live at the poverty line for three months -and why does asset poverty matter? A third of U.S. families are liquid asset poor and these families are disproportionately minority, young, and low-income. A lack of assets threatens families' ability to weather adverse events. After experiencing an involuntary job loss, asset-poor families are nearly three times more likely to experience hardship than non-asset-poor families. These large differences exist across the income spectrum-for low-, middle-, and
Research Areas Economic mobility and inequality Families Social safety net
Tags Economic well-being Income and wealth distribution Financial stability
Policy Centers Center on Labor, Human Services, and Population