The Multi-dimensional Effect of Household Debt on Urban Individual Well-Being in Klang Valley Malaysia

Cai, Yunchao; Yusof, Selamah Abdullah; Amin, Ruzita Bt Mohd; Arshad, Mohd Nahar Mohd

doi:10.1007/s11205-021-02706-7

Cited by 3 publications

(3 citation statements)

References 73 publications

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“…According to [26], individuals with good financial knowledge have a low probability of getting into debt. Financial knowledge and indebtedness behaviors resulted in respondents' being disciplined in financing borrowing costs and less reliant on loans, which was also found in [22]. Education level has a relationship with financial behavior but no influence on financial fragility [3,55].…”

Section: Multiple Regression Analysismentioning

confidence: 84%

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The Impact of Financial Shock, Behavior, and Knowledge on the Financial Fragility of Single Youth

et al. 2022

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Financial fragility is an important issue in the well-being of individuals. Previous studies have shown that many young people are vulnerable to financial fragility. To add value to previous findings, the issue of financial fragility was focused on single youths in the middle-income group (M40) in urban areas. The objective of the study was to determine the factors influencing the financial fragility of single youth (M40) in urban areas. A quantitative approach using a survey method was applied. The study’s sample consisted of 25–34-year-old single urban youths. Questionnaires were used as research instruments and were distributed online. A total of 374 samples were analyzed using multilevel regression. The results of the analysis show that spending knowledge, financial behavior, saving behavior, and financial shock are the determining factors of financial fragility among M40 single youth in urban areas.

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Section: Multiple Regression Analysismentioning

confidence: 84%

“…A comparison of the median household income for urban and rural areas is important in providing a clear picture of the differences in income ranges [20]. This situation creates the probability of financial fragility occurring among M40 single youths in the Greater Kuala Lumpur area, including Putrajaya [21,22].…”

Section: Introductionmentioning

confidence: 99%

The Impact of Financial Shock, Behavior, and Knowledge on the Financial Fragility of Single Youth

et al. 2022

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“…Indebtedness is attracting widespread interest due to its significant impact on the economic well-being of households (Bialowolski & Weziak-Bialowolska, 2021;Cai et al, 2021;Heintz-Martin et al, 2021) and family formation (Nau et al, 2015;Sieg & Wang, 2018). On the one hand, it is a way to smooth consumption over the life cycle.…”

Section: Introductionmentioning

confidence: 99%

Do Children Matter to the Household Debt Burden?

et al. 2023

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In this paper, we assess the scale of indebtedness of households with children and investigate the impact of having children on the likelihood of falling into excessive debt. Using the unique dataset on indebted households in Poland, we employ two indicators to identify over-indebtedness: debt service-to-income ratio (DSTI) and subjective debt burden (SB). Applying two different debt measures allows encompassing both the economic and psychological dimensions of debt burden. In addition, we divide households into two groups: young (with a reference person aged under 35) and middle-aged and older adults (aged 35+). We find that the number of children increases the monthly debt repayments and reduces the likelihood of over-indebtedness, both according to DSTI and SB, for middle-aged and older adult households. There is no evidence for the influence of children on the over-indebtedness of young families. Our results suggest that for this age group of households, the other variables related to their economic situation and debt structures may explain the likelihood of over-indebtedness better than the presence of children.

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Why Net Worth Misrepresents Wealth Effects and What to Do About It

Dräger,

Pforr,

Müller

2023

SocScience

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Wealth plays an important role in social stratification but the results that can be obtained when analyzing wealth as a predictor variable depend on modeling decisions. Although wealth consists of multiple components it is often operationalized as net worth. Moreover, wealth effects are likely non-linear, but the functional form is often unknown. To overcome these problems, we propose to 1) split up net worth into gross wealth and debt and evaluate their joint effect and 2) use non-parametric Generalized Additive Models. We show in a simulation study that this approach describes systematic wealth differences in more detail and overfits less to random variation in the data than standard approaches. We then apply the approach to re-analyze wealth gaps in educational attainment in the US. We find that the operationalization of wealth as net worth results in a misclassification of which children have the best and the worst educational prospects. Not negative net worth is associated with the worst educational prospects but only the combination of low gross wealth and low debt. The most advantaged group are not only children with high net worth but all children with high gross wealth independent of the households' amount of debt.

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The Multi-dimensional Effect of Household Debt on Urban Individual Well-Being in Klang Valley Malaysia

Cited by 3 publications

References 73 publications

The Impact of Financial Shock, Behavior, and Knowledge on the Financial Fragility of Single Youth

The Impact of Financial Shock, Behavior, and Knowledge on the Financial Fragility of Single Youth

Do Children Matter to the Household Debt Burden?

Why Net Worth Misrepresents Wealth Effects and What to Do About It

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