The Effects of Earned Wage Access on Workers’ Financial Well-Being

Nearly a third of Americans cannot pay their bills on time. For many families, the issue is not insolvency, but rather the short-term illiquidity created by the pay cycle. Recognizing this, financial technology apps have begun to give workers on-demand access to their earned wages in the form of pay advances. This project investigates the impact this technology has on workers' labor outcomes and financial well-being. In particular, the benefits of low-cost liquidity are weighed against the possible risks of self-control issues. The project will discuss implications for public policy and behavioral consumption-savings models.