News

January 16, 2019

Matthew Shapiro co-authored a piece in New York Times on the financial damage the government shutdown is doing to federal workers

Matthew ShapiroIn a New York Times opinion piece, Matthew Shapiro, along with Michael Gelman, Shachar Kariv, Steven Tadelis, and Dan Silverman, discuss their research on the financial effects of the 2013 government shutdown on federal workers, and how that research translates to the current shutdown:

About 20 percent just made it paycheck to paycheck; they had less than a typical day’s worth of spending in their accounts on the day before payday. This is not unusual even for people like federal employees who hold steady jobs at steady pay.

In this shutdown, however, it means that most affected workers will need to take multiple measures, sharply cutting discretionary spending and being late paying mortgages, rent and other bills.

Shapiro recorded a video explaining their research: Why this federal shutdown will hit workers harder