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Does U.S. Household Financial Access Mediate the Relationship Between a Large Income Drop and Credit Record?

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  • J. Birkenmaier

    (Saint Louis University School of Social Work)

  • Q. Fu

    (Saint Louis University School of Public Health)

Abstract

Household financial access, in the form of savings, investments, credit, and others, can provide the means to smooth consumption and make on-time payments when large income drops occur. This study examined the model in which household financial access mediated the association between a large income drop and credit record in a national representative sample. Results indicate that household financial access was significantly associated with a large income drop after controlling for financial education, socialization, knowledge, and sociodemographic variables. Results suggest that household financial access may buffer the relationship. Practice and policy implications are included.

Suggested Citation

  • J. Birkenmaier & Q. Fu, 2019. "Does U.S. Household Financial Access Mediate the Relationship Between a Large Income Drop and Credit Record?," Journal of Consumer Policy, Springer, vol. 42(2), pages 267-283, June.
    • Handle: RePEc:kap:jcopol:v:42:y:2019:i:2:d:10.1007_s10603-019-9407-6
    DOI: 10.1007/s10603-019-9407-6
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    References listed on IDEAS

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    2. Cantarella, Michele & Kavonius, Ilja Kristian, 2022. "Job polarisation and household borrowing," Working Paper Series 2683, European Central Bank.

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