The Tie Between Wages and Material Hardship: Evidence from the Poverty Tracker

The Tie Between Wages and Material Hardship: Evidence from the Poverty Tracker

The prevalence of material hardship—or difficulty meeting routine expenses—is largely similar among New Yorkers in poverty and those living close to the poverty line, as previously documented in Poverty Tracker studies. Relatively persistent rates of material hardship below 200% of the poverty line suggest that moving above the poverty line is no guarantee of financial security or protection from material hardship. 

Similarly, many argue that full-time work in New York City is also not a guarantee of financial security, with many jobs providing wages too low to secure basic needs. But at what wage do we see workers maintaining financial security and not enduring material hardships, such as not being able to afford food for one’s family, not seeking medical care because it’s too expensive, or having utilities shut off because one cannot afford the payment?

This analysis harnesses the latest data from the Poverty Tracker to examine the relationship between wages and material hardship, identifying where declines in hardship are most pronounced—is it when wages rise above $18 per hour, $20, $25? The pattern of this relationship can provide policymakers with insights into how to reduce material hardship among workers in New York City. Such reductions appear possible through policies that ensure wages provide meaningful financial stability, as well as those that connect workers to stable jobs in high-growth sectors that are likely to pay well today and in the future.

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Key Findings

  • More than 65% of workers earning between $16.50 and $25 per hour experienced at least one material hardship in 2023.
  • Experiences of material hardship only begin to meaningfully taper off for workers with wages above $25 per hour.
  • This pattern is also evident when examining more specific forms of hardship, particularly housing, food, and financial hardship. 

Suggested Citation:

Collyer, Sophie, Irwin Garfinkel, Sally Ma, and Julien Teitler. 2025. The tie between wages and material hardship: Evidence from the Poverty Tracker. New York: Center on Poverty and Social Policy, Columbia University. 

Published on April 29, 2025