Job expectations and financial fragility

Evidence from pre-Covid Spain

Bibliographic Data

ID21541509
AuthorsMarcos Álvarez-Espiño (0000-0002-9514-7544, Universidade de Santiago de Compostela, corresponding author), Sara Fernández-López (0000-0003-2496-4333, Universidade de Santiago de Compostela), Lucía Rey-Ares (0000-0002-5165-742X, Universidade de Santiago de Compostela)
Year2024
Volume66
Issue4
Pages1709-1733
Publication date2024-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEmpirical Economics (JOURNAL)
Journal identifiersISSN: 0377-7332 • E-ISSN: 1435-8921
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s00181-023-02499-3
OpenAlexW4387615005
LanguageEN
References cited49

Previous research has related household financial fragility (FF) and the employment status of the household members by focusing only on the labour income channel. In contrast, the literature has scarcely addressed the study of this relationship from a psychological perspective that could be related to the theory of bounded rationality. This article aims to analyse how job expectations relate to the level of household FF. Using a sample of 8554 Spanish individuals in the period 2016–2017, we construct a multidimensional index of household FF. The results indicate that households with unemployed, self-employed, or part-time workers have higher levels of FF, but the job expectations of the household and the individual play an even more important role in the level of the FF. These findings suggest that the perception of labour market uncertainty may influence the level of household FF to a greater extent than the objective employment situations of the individuals

Demographic economics · Economic growth · Economics · Financial crisis · Financial fragility · Fragility · Job insecurity · Labour economics · Macroeconomics · Rationality · Unemployment · Employment and Welfare Studies · Financial Literacy, Pension, Retirement Analysis · Global Health Care Issues

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