Determinants of individuals' objective and subjective financial fragility during the COVID-19 pandemic.

ABSTRACT: We examine determinants of the objective and subjective financial fragility of 2100 individuals across Australia, France, Germany, and South Africa during the COVID-19 pandemic. Objective financial fragility reflects individuals' (in)ability to deal with unexpected expenses, while subjective financial fragility reflects their emotional response to financial demands. Controlling for an extensive set of socio-demographics, we find that negative personal experiences during the pandemic (i.e., reduced or lost employment; COVID-19 infection) are associated with higher objective and subjective financial fragility. However, individuals' cognitive (i.e., financial literacy) as well as non-cognitive abilities (i.e., internal locus of control; psychological resilience) help to counteract this higher

SUBMITTER: Kleimeier S 

PROVIDER: S-EPMC10182865 | biostudies-literature | 2023 Aug

REPOSITORIES: biostudies-literature