Racialized Debts: Racial Exclusion From Credit Tools and Information Networks

2020 ◽  
pp. 089692051989463 ◽  
Author(s):  
Raphaël Charron-Chénier ◽  
Louise Seamster
Keyword(s):  
Racial Differences ◽  
Financial Literacy ◽  
Information Networks ◽  
Financial Health ◽  
Welfare Programs ◽  
Consumer Finances ◽  
Racial Exclusion ◽  
Using Data ◽  
Black Households ◽  
Debt Levels

Research on debt highlights its use as a tool for investment and a substitute for public welfare programs. Use of debt, however, is not equal across social groups. Black households in particular have lower debt levels than white households. In this paper, we explore the context behind massive racial disparities in household debt. Conceptually, we propose that personal debt is an indicator of integration in the financial system. As such, we argue that black households’ lower debt levels can be understood as financial isolation rather than financial health. We support this argument by using data from the Survey of Consumer Finances to estimate racial differences in access to financial tools net of racial differences in socioeconomic status, asset levels, and financial literacy. We also show that black households’ financial information networks are different from white households’ in ways that suggest restricted access to formal financial institutions.

scholarly journals Race and Consumption

2016 ◽  
Vol 3 (1) ◽  
pp. 50-67 ◽  
Author(s):  
Raphaël Charron-Chénier ◽  
Joshua J. Fink ◽  
Lisa A. Keister
Keyword(s):  
Racial Differences ◽  
Racial Inequality ◽  
Consumer Expenditure ◽  
Racial Stratification ◽  
Income Levels ◽  
Total Spending ◽  
Goods And Services ◽  
Heterogeneous Effects ◽  
Using Data ◽  
Black Households

Differences in consumption patterns are usually treated as a matter of preferences. In this article, the authors examine consumption from a structural perspective and argue that black households face unique constraints restricting their ability to acquire important goods and services. Using data from the Consumer Expenditure Surveys, the authors examine racial differences in total spending and in spending on major categories of goods and services (food, transportation, utilities, housing, health care, and entertainment). The authors also capture heterogeneous effects of racial stratification across class by modeling racial consumption gaps across household income levels. The results show that black households tend to have lower levels of total spending than their white counterparts and that these disparities tend to persist across income levels. Overall, these analyses indicate that racial disparities in consumption exist independently of other economic disparities and may be a key unexamined factor in the reproduction of racial inequality.

scholarly journals Perceptions of Caregiving: Racial Examinations of Resiliency and Stress

2020 ◽  
Vol 4 (Supplement_1) ◽  
pp. 352-352
Author(s):  
Athena Koumoutzis ◽  
Kelly Cichy
Keyword(s):  
Racial Differences ◽  
Daily Living ◽  
Process Model ◽  
Well Being ◽  
Stress Process Model ◽  
Parental Caregiving ◽  
The Family ◽  
Using Data ◽  
Midlife Adults ◽  
Emotional Strain

Abstract Adult children are at risk of emotional strain when parental caregiving needs emerge. Pearlin’s Stress Process Model (1990) and caregiver studies suggest minority caregivers report lower subjective caregiving burden, however, few studies simultaneously consider both the stresses and rewards of caregiving. Using data from Wave II of the Family Exchange Study (N = 243), we examine racial differences in midlife adults’ perceptions (i.e., stress and rewards) of assisting their parents with activities of daily living (ADLs) and the associations between perceptions of ADL assistance and emotional well-being among adults who help their parents with ADLs. Compared to non-minority caregivers (M = 4.18, SD = 0.91), minority caregivers (M = 4.45, SD = 0.84) found it more rewarding to help their mother (t(314) = -2.54, p < .05), whereas non-minority caregivers (M = 2.25, SD = .1.27) found it more stressful to help their father than did minority caregivers (M = 1.64, SD = 0.99), t(162) = 3.01, p < .01). After controlling for demographics and ADL needs, linear regression analyses revealed that the stress of helping parents predicted depression (F(6, 189) = 5.30, p < .001) and race moderated the association (p < .01); the association was only significant for minority caregivers (p < .05). Implications will be discussed.

Struggling to make ends meet: can consumer financial behaviors improve?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lisa K. Meneau ◽  
Janakiraman Moorthy
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Group Analysis ◽  
Self Control ◽  
Thinking Styles ◽  
Financial Health ◽  
Content Type ◽  
Financial Behaviors ◽  
Financial Products ◽  
The Impact

PurposeThe purpose of the study is to examine the following two research objectives. The first was to examine the predictive relationships that consumer characteristics of financial literacy, thinking styles and self-control have with a consumer's financial behaviors. The second goal was to ascertain financial management products' ability to aid those consumers who need it the most by weakening the predictive effects of consumer traits on financial behaviors.Design/methodology/approachThe study employed a web-based survey to gather information. The measurement and structural models were analyzed using generalized structured component analysis (GSCA), a component-based structural equation model. The mediation effect of self-control is assessed using the GSCA. The conditional mediation of demographic variables and use of personal financial management products are evaluated using multi-group analysis (MGA) in GSCA.FindingsAntecedents, financial literacy, thinking styles and self-control consumer characteristics are predictors of financial behaviors. However, self-control plays a more prominent role as a mediator between the other variables, strengthening the overall relationship. Also, financial products can have a beneficial moderation effect assisting those consumers who need them the most.Practical implicationsThese insights help in creating target specific financial literacy strategies to influence consumers' financial behaviors. Also, there is a need to develop mechanisms to influence a consumer's self-control and thinking styles to improve financial behavior. In conjunction with other initiatives, the impact of financial literacy has a greater effect on financial behaviors. Further, the insights assist financial institutions and financial technology firms in offering and creating products to help customers make better financial decisions and improve their financial behaviors.Social implicationsThe research addressed a significant global issue – consumer financial health. The Great Recession and the COVID-19 recession highlight the need to focus on the consumer and efforts to improve their financial health.Originality/valueThis research highlighted the mediating role of self-control and suggested that existing and future financial products can positively influence consumer behavior drivers.

scholarly journals The comparative analysis of the welfare attitude in accordance with the dual status of taxpayer and welfare recipient by using data linkage

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Miae Oh ◽  
Hyunsoo Choi
Keyword(s):  
Welfare Recipient ◽  
Tax Burden ◽  
Welfare Programs ◽  
Welfare Benefit ◽  
Negative Thinking ◽  
Data Files ◽  
Dual Status ◽  
Using Data ◽  
Break Even Point ◽  
Matched Data

ABSTRACT BackgroundData linkage is a method to form a complete data that can provide more abundant information by combining a plurality of different data files. In this study, we construct the matched data combined with Korea Welfare Panel Survey and National Survey of Tax and Benefit by using statistical matching methodology. We aim to provide the empirical and advisable evidence for tax and welfare policy by analyzing about the welfare attitude in accordance with the welfare status of taxpayer or welfare recipient using matched data.  ResultsAccording to the analysis results, people with dual status of taxpayer above the tax break-even point and welfare recipient due to recent enlargement of welfare programs are relatively more positive about the expansion of the universal welfare than taxpayers who never receive welfare benefit. Also, in the group with dual status, the recognition that the current tax burden of middle class is low is relatively higher and the negative thinking about the need to increase tax burden for the enlargement of the universal welfare programs is relatively lower than the group who pay tax but never receive welfare benefit.

scholarly journals Pemberdayaan Masyarakat Melalui Pendidikan Perencanaan dan Pengelolaan Keuangan Rumah Tangga dan Investasi bagi Ibu Rumah Tangga dalam Rangka Peningkatan Kualitas Hidup Keluarga

2019 ◽  
Vol 3 (1) ◽  
pp. 137-154
Author(s):  
Agung Dharmawan Buchdadi ◽  
Solikha Solikha ◽  
Agung A. W. S Waspodo ◽  
Destria Kurnianti
Keyword(s):  
Community Service ◽  
Financial Literacy ◽  
Financial Health ◽  
Power Point

The aim of this study is to improve knowledge and skill about financial literacy, especially for woman who take the most responsibilities to manage finance in her household. Attended by 13 housewives, the method used in this activity is; first, explanation using power point slides and LCD projector; second, experience sharing and discussion; distributing quetionaire to measure their level of financial literacy, discussed about their characteristics on investment and what kind of product which is suit to their ability to accept risk. Held on May 7, 2017, the community service is funded by DIPA BLU Faculty of Economics, Universitas Negeri Jakarta. The result shows that only few participants understand how to measure their financial health and what kind of investment products that suit to their characteristics as an investor.

Disparate Recoveries: Wealth, Race, and the Working Class after the Great Recession

2021 ◽  
Vol 695 (1) ◽  
pp. 173-192
Author(s):  
Fenaba R. Addo ◽  
William A. Darity
Keyword(s):  
Middle Class ◽  
Working Class ◽  
Great Recession ◽  
Wealth Inequality ◽  
Net Worth ◽  
The Great Recession ◽  
Consumer Finances ◽  
White Working Class ◽  
Using Data ◽  
The Relationship

What does it mean to be working class in a society of extreme racial wealth inequality? Using data from the Survey of Consumer Finances, we investigate the wealth holdings of Black, Latinx, and white working-class households during the post–Great Recession (pre–COVID-19) period that spanned 2010 to 2019. We then explore the relationship between working-class and middle-class attainment using a wealth-based metric. We find that, in terms of their net worth, fewer Black working-class households benefitted from the economic recovery than white working-class households. Among white households, the working class saw the greatest increase in wealth in both absolute and relative terms. Working-class households were less likely to be middle class as defined by their wealth holdings, and Black and Latinx households were also less likely to be middle class. For Black households, racial identity is a stronger predictor of wealth attainment than occupational sector.

scholarly journals It’s Still about Race: Peremptory Challenge Use on Black Prospective Jurors

2019 ◽  
Vol 57 (1) ◽  
pp. 3-30 ◽  
Author(s):  
Whitney DeCamp ◽  
Elise DeCamp
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Racial Discrimination ◽  
Racial Differences ◽  
Jury Selection ◽  
Racially Diverse ◽  
Criminal Trials ◽  
Peremptory Challenge ◽  
Using Data

Objectives: The use of race as a motive for excluding individuals from serving on juries in American criminal trials is unconstitutional. Nevertheless, Black individuals remain substantially more likely than others to be removed during jury selection through peremptory challenges. This study tests whether and to what extent there is a racial effect on peremptory challenge use by the prosecution or the defense. Method: Using data from 2,542 venire members in Mississippi, propensity score matching is used to examine racial differences in jury selection by comparing Black venire members to similarly situated White venire member counterparts. Results: Findings suggest that Black venire members are 4.51 times as likely to be excluded from a jury due to peremptory challenges from the prosecution in comparison to White venire members. Conversely, White venire members are 4.21 times as likely to be excluded through peremptory challenges by the defense in comparison to Black venire members. Conclusions: After controlling for all observed variables, there remain significant differences between White and Black venire members, suggesting racial discrimination by both the prosecution and the defense in peremptory challenge usage. Black individuals are more likely to be excluded from juries through these effects, resulting in less racially diverse juries.

scholarly journals Food away from home and the reversal of the calorie intake decline in India

Food Security ◽  
2020 ◽  
Author(s):  
Deepthi E. Kolady ◽  
Shivendra Kumar Srivastava ◽  
David Just ◽  
Jaspal Singh
Keyword(s):  
Data Collection ◽  
Poverty Line ◽  
Calorie Intake ◽  
Welfare Programs ◽  
Household Level ◽  
Food Away From Home ◽  
Social Welfare Programs ◽  
Food And Nutrition ◽  
Per Capita ◽  
Using Data

Abstract India experienced a consumption puzzle since the 1970s, whereby households’ calorie intakes declined over time, despite significant economic growth. This declining trend in calorie intake (consumption puzzle) was reversed for the first time in 2011–12. This is the first empirical study that investigates the relationship between refinements in data collection on food away from home (FAFH) and the trend reversal in per capita calorie intake decline in India. Findings from the study showed that the declining trend in calorie intake in India has been partly due to measurement issues and that correcting for these issues through refinements in data collection for FAFH in 2011–12 had a positive effect on the reversal of the calorie intake decline. India uses per capita calorie intake estimated using data from HCES to define the official poverty line, a benchmark used in designing many social welfare programs. Incorrect estimates of calorie intake will have negative implications on the effectiveness of welfare programs aimed at reducing food insecurity. Findings from this study provide insights for further improvement in data collection regarding household-level consumption expenditures. The study has implications not only for India but also for other countries that use household-level consumption data to understand diets and to design food and nutrition programs.

scholarly journals Exports of Spanish manufacturing firms and financial constraints

2020 ◽  
pp. 234094442091630
Author(s):  
Juan A. Máñez ◽  
Óscar Vicente-Chirivella
Keyword(s):  
Financial Constraints ◽  
Jel Classification ◽  
Large Firms ◽  
Financial Health ◽  
Export Intensity ◽  
Export Decisions ◽  
Export Decision ◽  
Using Data ◽  
The Cost ◽  
The Impact

We investigate the role of financial constraints on firms’ exporting behavior, including firms’ export decision, export intensity, firms starting to export decision, and exports persistence. Our financial constraints variable is a synthetic variable that summarizes information on different dimensions such as total assets, profitability, liquidity, solvency, repaying ability, and (new in this type of analyses) the cost of external financing. Using data on Spanish manufacturing for the period 1992–2014, we find evidence supporting that financial health is relevant to explain small and medium-sized enterprises (SMEs) exporting decisions and starting to export decisions but not those of large firms. Financial health does not seem to affect large firms’ export intensity and the results of the impact of financial health on SMEs export intensity are not conclusive. Nevertheless, financial health is a determinant of export persistence of large firms and SMEs. JEL CLASSIFICATION: F14; G32; L60; C35

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