[sologoub]

One scenario this article doesn't address is a situation where an employee who previously earned a lot less comes to rely on the higher salary and adjusts his/her expenses accordingly, but then for whatever reason ends up having to look for another job, which is unlikely to pay nearly as much.

I'm guessing that while the situation would be extremely unfortunate, the overall higher income should still help cushion the blow, provided the money was not completely spent, and leave that person better off.

[andrewvc]

I'm not sure if you realize that the poor hold on to a ton of debt in this country, and a large part of it is their inability to dig themselves out of the holes they're in.

Now, it is true that financial literacy is tends to be low among those who make little, but it is also the case that many people who are financially literate, but poor, just can't dig themselves out of debt. Medical expenses, for instance, are one of the leading costs of bankruptcy in this country.

[sologoub]

I do realize that and am fairly familiar with how the cycle works, largely fueled by pay-day loans.

Is your hypothesis that the higher income, even if temporary, may afford significant relief from this?