Members in the Media
From: PBS

Does being paid hourly vs. yearly change how you save?


The majority of all workers in the United States were paid hourly last year. Typically, hourly wage earners have low incomes and are vulnerable to economic shocks. So we wondered, does being paid hourly instead of yearly somehow change the way people view themselves and their work?

According to a well-established psychological theory known as “construal theory,” the answer is yes.

According to construal theory, people view the distant future much differently than they view today, tomorrow or next week. When we think about long-term plans, we consider intangible factors like goals and desires. When we think about our future retirement, we envision ourselves relaxing on the golf course.

Read the whole story: PBS

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