IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v125y2016i1p127-147.html
   My bibliography  Save this article

Does Financial Assistance Really Assist? The Impact of Debt on Wellbeing, Health Behavior and Self-Concept in Taiwan

Author

Listed:
  • Ming-Chang Tsai
  • Rachel Dwyer
  • Ruey-Ming Tsay

Abstract

In the current global environment of unpredictable economic adversity, financial help appears to be all the more important in order for people to make it through hard times. Social support theory expects that debt’s adverse impact on subjective well-being can be moderated by access to financial help within one’s social network. This study tests this hypothesis by extending research attention into social contacts and self-concept as well. Using a national probability sample of Taiwan, we conduct regression-estimation-with-measurement modeling to assess the impact of debt and unrealized loss (UL) in housing price on life situation. Our finding shows that both debt and UL produce direct negative impact on happiness and health behaviors, while they has scant influence on social contacts and self-esteem. Financial assistance from kin somewhat moderates the adverse influences of indebtedness, while financial assistance from friends and banks mostly represents a debt trap that leads to lower levels of life satisfaction and self-concept. We conclude that seeking financial help, in general, is a response to rather than a solution for indebtedness. Copyright Springer Science+Business Media Dordrecht 2016

Suggested Citation

  • Ming-Chang Tsai & Rachel Dwyer & Ruey-Ming Tsay, 2016. "Does Financial Assistance Really Assist? The Impact of Debt on Wellbeing, Health Behavior and Self-Concept in Taiwan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(1), pages 127-147, January.
    • Handle: RePEc:spr:soinre:v:125:y:2016:i:1:p:127-147
    DOI: 10.1007/s11205-014-0835-z
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11205-014-0835-z
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11205-014-0835-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Giuseppe Bertola & Richard Disney & Charles Grant (ed.), 2006. "The Economics of Consumer Credit," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262026015, December.
    2. Wan-chi Chen, 2012. "How Education Enhances Happiness: Comparison of Mediating Factors in Four East Asian Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 106(1), pages 117-131, March.
    3. Yasuharu Tokuda & Takashi Inoguchi, 2008. "Interpersonal Mistrust and Unhappiness Among Japanese People," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 89(2), pages 349-360, November.
    4. Pei-Shan Liao & Yang-Chih Fu & Chin-Chun Yi, 2005. "Perceived quality of life in Taiwan and Hong Kong: an intra-culture comparison," Journal of Happiness Studies, Springer, vol. 6(1), pages 43-67, March.
    5. James X. Sullivan, 2008. "Borrowing During Unemployment: Unsecured Debt as a Safety Net," Journal of Human Resources, University of Wisconsin Press, vol. 43(2), pages 383-412.
    6. Amery Wu & Bruno Zumbo, 2008. "Understanding and Using Mediators and Moderators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 87(3), pages 367-392, July.
    7. Eliana La Ferrara, 2003. "Kin Groups and Reciprocity: A Model of Credit Transactions in Ghana," American Economic Review, American Economic Association, vol. 93(5), pages 1730-1751, December.
    8. Drentea, Patricia & Lavrakas, Paul J., 2000. "Over the limit: the association among health, race and debt," Social Science & Medicine, Elsevier, vol. 50(4), pages 517-529, February.
    9. Alex Michalos & Bruno Zumbo & Anita Hubley, 2000. "Health and the Quality of Life," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 51(3), pages 245-286, September.
    10. Mark Taylor, 2011. "Measuring Financial Capability and its Determinants Using Survey Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 102(2), pages 297-314, June.
    11. Irina Grafova, 2007. "Your Money or Your Life: Managing Health, Managing Money," Journal of Family and Economic Issues, Springer, vol. 28(2), pages 285-303, June.
    12. Fu-Chuan Lai & Chia-Hung Sun & An-Ming Wang, 2014. "Housing Appreciation (Depreciation) and Owners’ Welfare: An Alternative View," Urban Studies, Urban Studies Journal Limited, vol. 51(1), pages 63-74, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jing Jian Xiao & Kyoung Tae Kim, 2022. "The Able Worry More? Debt Delinquency, Financial Capability, and Financial Stress," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 138-152, March.
    2. Kamer Karakurum-Ozdemir & Melike Kokkizil & Gokce Uysal, 2019. "Financial Literacy in Developing Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 325-353, May.
    3. Thanh-Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2020. "Credit and Ethnic Consumption Inequality in the Central Highlands of Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(1), pages 143-172, February.
    4. Begoña Gutiérrez-Nieto & Carlos Serrano-Cinca & Beatriz Cuéllar-Fernández & Yolanda Fuertes-Callén, 2017. "The Poverty Penalty and Microcredit," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(2), pages 455-475, September.
    5. Soomin Ryu & Lu Fan, 2023. "The Relationship Between Financial Worries and Psychological Distress Among U.S. Adults," Journal of Family and Economic Issues, Springer, vol. 44(1), pages 16-33, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ming-Chang Tsai & Heng-Hao Chang & Wan-chi Chen, 2012. "Globally Happy: Individual Globalization, Expanded Capacities, and Subjective Wellbeing," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(3), pages 509-524, September.
    2. Ilias‐Ioannis Kyriopoulos & Dimitris Zavras & Antonis Charonis & Kostas Athanasakis & Elpida Pavi & John Kyriopoulos, 2016. "Indebtedness, Socioeconomic Status, and Self‐Rated Health: Empirical Evidence From Greece," Poverty & Public Policy, John Wiley & Sons, vol. 8(4), pages 387-397, December.
    3. Averett, Susan L. & Smith, Julie K., 2014. "Financial hardship and obesity," Economics & Human Biology, Elsevier, vol. 15(C), pages 201-212.
    4. Pei-shan Liao & Daigee Shaw & Yih-ming Lin, 2015. "Environmental Quality and Life Satisfaction: Subjective Versus Objective Measures of Air Quality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(2), pages 599-616, November.
    5. Pei-shan Liao, 2014. "More Happy or Less Unhappy? Comparison of the Balanced and Unbalanced Designs for the Response Scale of General Happiness," Journal of Happiness Studies, Springer, vol. 15(6), pages 1407-1423, December.
    6. Bertermann, Alexander & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2023. "More Education Does Make You Happier – Unless You Are Unemployed," IZA Discussion Papers 16454, Institute of Labor Economics (IZA).
    7. Pei-shan Liao, 2009. "Parallels Between Objective Indicators and Subjective Perceptions of Quality of Life: A Study of Metropolitan and County Areas in Taiwan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 91(1), pages 99-114, March.
    8. Clayton, Maya & Liñares-Zegarra, José & Wilson, John O.S., 2015. "Does debt affect health? Cross country evidence on the debt-health nexus," Social Science & Medicine, Elsevier, vol. 130(C), pages 51-58.
    9. Irina Grafova, 2011. "Financial Strain and Smoking," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 327-340, June.
    10. Alexander Bertermann & Daniel A. Kamhöfer & Hannah Schildberg-Hörisch, 2023. "More Education Does Make You Happier – Unless You Are Unemployed," SOEPpapers on Multidisciplinary Panel Data Research 1192, DIW Berlin, The German Socio-Economic Panel (SOEP).
    11. Arango, Luis E. & Cardona-Sosa, Lina, 2023. "Consumer credit in an emerging economy: Demand, supply, and liquidity restrictions," Emerging Markets Review, Elsevier, vol. 54(C).
    12. Piotr Białowolski & Dorota Węziak-Białowolska & Tyler J. VanderWeele, 2019. "The impact of savings and credit on health and health behaviours: an outcome-wide longitudinal approach," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 64(4), pages 573-584, May.
    13. Bertermann, Alexander & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2023. "More education does make you happier - unless you are unemployed," DICE Discussion Papers 406, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    14. Laura Argys & Andrew Friedson & M. Melinda Pitts, 2016. "Killer Debt: The Impact of Debt on Mortality," FRB Atlanta Working Paper 2016-14, Federal Reserve Bank of Atlanta.
    15. Lawrence M. Berger & Jason N. Houle, 2019. "Rising Household Debt and Children’s Socioemotional Well-being Trajectories," Demography, Springer;Population Association of America (PAA), vol. 56(4), pages 1273-1301, August.
    16. Averett, Susan L. & Smith, Julie K., 2012. "Indebted and Overweight: The Link Between Weight and Household Debt," IZA Discussion Papers 6898, Institute of Labor Economics (IZA).
    17. Claudio Michelacci & Hernán Ruffo, 2015. "Optimal Life Cycle Unemployment Insurance," American Economic Review, American Economic Association, vol. 105(2), pages 816-859, February.
    18. Osei-Tutu, Francis & Weill, Laurent, 2023. "Individualism reduces borrower discouragement," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 370-385.
    19. Raj Chetty, 2005. "Why do Unemployment Benefits Raise Unemployment Durations? Moral Hazard vs. Liquidity," NBER Working Papers 11760, National Bureau of Economic Research, Inc.
    20. Alfonso Urzúa & Claudia Miranda-Castillo & Alejandra Caqueo-Urízar & Franco Mascayano, 2013. "Do Cultural Values Affect Quality of Life Evaluation?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(3), pages 1295-1313, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:125:y:2016:i:1:p:127-147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.