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Journal Article

Measuring financial capability and its determinants using survey data

Authors

Publication date

2011

Abstract

Financial capability, or people’s ability to manage and take control of their finances, is receiving increasing interest among policy makers as more people find themselves in difficult financial situations during the current economic downturn. We tackle the problem of how to measure financial capability—with a specific focus on making ends meet and money management—using data from a general household survey (the British Household Panel Survey), and then identify its key determinants using panel data models. This is important if appropriate policies and programmes are to be targeted at those most in need. We find the lowest financial capability among young unemployed single adults living in households with other unrelated non-working adults. In contrast, older men and women in full-time work with an employed spouse have the most financial capability.

Published in

Social Indicators Research

Volume and page numbers

102 , 297 -314

DOI

http://dx.doi.org/10.1007/s11205-010-9681-9

ISSN

16

Subjects

Social Groups, Household Economics, and Finance

Notes

not held in Res Lib - bibliographic reference only

#513784


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