Regressing Financial Needs and Expectations on the Self-Assessed and the Objective Measure

Abstract

This is the fourth chapter of Part IV, focusing on the analysis of the Self-Assessed Measure (economic strain: difficulties in making ends meet) of economic vulnerability and its distinctiveness from the Objective Measure (income poverty). Adding the variable set ‘Financial Needs and Expectations’ will allow testing hypothesis I iv) positing that there are significant differences between the two vulnerable groups defined by the Objective and the Self-Assessed Measure of economic vulnerability. According to our theoretical model, the Self-Assessed Measure entails a juxtaposition of monthly income with the individual’s needs in terms of finances. Therefore, our general hypothesis states that the Self-Assessed Measure is relatively more sensitive to variations in ‘Financial Needs and Expectations’ compared to the Objective Measure. The following covariates are used to operationalize ‘Financial Needs and Expectations’: socio-professional category, general health status, the frequency of going to a restaurant/coffee shop, seeing a movie/theater play or taking at trip.