Financial Shocks, Liquid Assets, and Material Hardship in Low- and Moderate-Income Households: Differences by Race

Mathieu Despard (), Michal Grinstein-Weiss, Shenyang Guo, Samuel Taylor and Blair Russell
Additional contact information
Mathieu Despard: Washington University
Michal Grinstein-Weiss: Washington University
Shenyang Guo: Washington University
Samuel Taylor: Washington University
Blair Russell: U.S. Department of Housing and Urban Development

Journal of Economics, Race, and Policy, 2018, vol. 1, issue 4, No 1, 205-216

Abstract: Abstract Low- and moderate-income (LMI) households need financial assets to help cope with income and expenditure shocks. Prior research identifies racial differences in wealth and wealth effects. We examined whether these gaps and effects exist for liquid financial assets. Using group invariance tests in structural equation modeling, we assessed the relationship between financial shocks and material hardship, as mediated by liquid financial assets and moderated by race/ethnicity among a sample of LMI tax filers (N = 7544). Though most study participants were employed (71%), average income was only $18,055 and average liquid financial assets was $4701. Black households had $2774 less in liquid financial assets compared to white households (p

Keywords: Low- and moderate-income households; Liquid assets; Financial shocks; Material hardship; Race; Ethnicity (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://link.springer.com/10.1007/s41996-018-0011-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joerap:v:1:y:2018:i:4:d:10.1007_s41996-018-0011-y

Ordering information: This journal article can be ordered from
https://www.springer ... policy/journal/41996

DOI: 10.1007/s41996-018-0011-y

Access Statistics for this article

Journal of Economics, Race, and Policy is currently edited by Gary A. Hoover

More articles in Journal of Economics, Race, and Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().