Financial Stress and Job Productivity: Evidence from Credit Counseling Clients
Kim, Haejeong, Sorhaindo, Benoir, Kim, Jinhee, Consumer Interests Annual
This study examined the relationship between credit-counseling clients' financial stress and their job productivity. The data came from two data collections from Wave I and II that track longitudinal information about credit counseling agency clients. Financial stress, health, income, and gender were found to be significantly related to self reported job productivity. Implications for consumer education and efficient financial information delivery are discussed.
The Purpose of the Study and Data
The purpose of this study is to examine how credit-counseling clients' financial stress impacts their job productivity. The population for this study is a group of consumers who telephone the credit counseling organization seeking assistance with managing their debts.
The data came from two data collections from Wave II and I that track longitudinal information about credit counseling agency clients. The Wave I was collected in 2003. A total of 7,200 were mail a survey and 443 were undeliverable. The adjusted response rate was 46% (3,121/6,757). About 20 months after the Wave I, the Wave II data were collected in February, March, and April 2005. The Wave II sample includes 7,200 individuals from Wave I in addition of 300 people who joined the debt management program. A total of 6,329 individuals were sent a survey after deleting incomplete or inaccurate mailing addresses. A total of 1,210 surveys were returned. After deleting unemployed respondents and unusable responses, 415 respondents were selected
Dependent variable is self reported job performance (1(very bad) to 5(very good)). Independent variables are age, gender, marital status, education, family relationship, health status, annual household income, debt load percentage, and financial distress/well-being. To examine the potential non-linearity of age and income, age and annual household income were included as categorical variables. …