Measuring financial capability and its determinants using survey data

Publication type

Journal Article

Author

Publication date

June 1, 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

Volume: 102 , p.297 -314

DOI

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

ISSN

3038300

Subjects

Notes

not held in Res Lib - bibliographic reference only

#513784

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest