Does Stress Make You Less Neighbourly?*

Abstract

Social cohesion and financial tensions are the key components of psychosocial well‐being, yet the relationship has rarely been examined. This article, which offers an empirical investigation into the complex and multidimensional character of social cohesion, examines how financial stress affects social relations in Australia and analyses the moderating effect of social support using longitudinal data from the Household, Income and Labour Dynamics in Australia (HILDA) survey. The results indicate that financial stress has negative effects on social cohesion and has the potential to contribute to social fragmentation. It was found that structural social cohesion is more affected by financial stress than cognitive social cohesion. This study also uncovers the beneficial and buffering effects that social support can bestow on financial stress trauma sufferers.