Correlational findings

Study Taylor et al. (2009): study GB 1996

16+ aged, United Kingdom, 1996-2000, 2002-2006
Survey name:
UK-BHPS combined waves
N = 72954
Non Response:
Interview: face-to-face


Authors's label
Financial incapability
Our Classification
Index constructed from questions about the following variables:
- perceived current financial situation
- reporting that financial situation has worsened since last year
- whether saves
- has housing payment problems
- problems required borrowing
- problems required cutbacks
-  been at least two months in housing arrears in last 12 months
A Not income-adjusted
B Income-adjusted
C Number of financial problems adjusted

Observed Relation with Happiness

Happiness Measure Statistics Elaboration / Remarks O-SLW-u-sq-n-7-e rs = - Table 46 reveals a similar pattern for all 3 measures of financial capability, with
low life satisfaction associated with higher financial incapability, with Spearman rank
correlation coefficients ranging from -0.169 with number of financial problems to -
0.220 with the income-unadjusted index. Furthermore, the average level of financial
incapability falls monotonically as reported life satisfaction increases and this too is
evident with all three incapability measures and across the sample period.
O-SLW-u-sq-n-7-e b-fix = -.23 Income-unadjusted index of financial incapability
b-fix controlled for:
- hh income
- savings
- good health
- widowed
- divorced/separated
- unemployed
- retired
- inactive
Adjusting for income does not significantly affect b-fix.
When b-fix is adjusted for number of financial problems b-fix=-.12
Gender-specific within-group effects show that the impact of financial incapability on life satisfaction does not differ between men and women.