Social Determinants of Debt Problems in a Nordic Welfare State: a Finnish Register-Based Study

Oksanen, Atte; Aaltonen, Mikko; Rantala, Kati

doi:10.1007/s10603-015-9294-4

Cited by 44 publications

(83 citation statements)

References 51 publications

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“…In sum, young adulthood is a tricky time, financially and in general: ongoing studies and high youth unemployment adversely affect young people’s financial independence (Furlong & Cartmel, ). Debt problems are also very common among young adults (Oksanen et al, ). This study showed that many parents give financial support to help young adults with debt problems, even if parental obligations have usually been fulfilled once children reach the age of majority, at least in Finland.…”

Section: Discussionmentioning

confidence: 99%

“…Losing one’s job, illness or the breakdown of a relationship, for example, tend to increase the risk of financial difficulties, as well as debt problems (Hiilamo, ; Patel et al, ; Townley‐Jones, Griffiths, & Bryant, ). Indeed, people with debt problems may well have severe financial difficulties even if the welfare state is supposed to help them to maintain their living standards (Oksanen et al, ).…”

Section: The Multidimensional Nature Of Young Adults’ Debt Problems Amentioning

confidence: 99%

“…Even so, recent financial developments, especially the extension of consumer credit to low‐income households and wage earners (Allon, ), easily lead to reliance on credit and consequently to debt problems. In other words, young adults who incur debts to cover the costs of education, housing and consumption are under more financial pressure in the current societal situation (see e.g., Oksanen, Aaltonen, & Rantala, ).…”

Section: Introductionmentioning

confidence: 99%

“…Many studies have shown that, on average, financial difficulties and debt problems are common not only among young adults, but also among those in the lower social strata, especially if they have child(ren) (Oksanen et al, ; Patel, Balmer, & Pleasence, ; Xiao, Chatterjee, & Kim, ). Neither a low educational level nor a low income (or having children) automatically leads to debt problems: students, for example, comprise an interesting low‐income group in this regard.…”

Section: Introductionmentioning

confidence: 99%

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Parental financial support: A safety net for young adults with debt problems

Majamaa

Rantala

2019

Int J Consumer Studies

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Parental financial support benefits young adults in societies with decreasing welfare‐state support and a pattern of early home‐leaving. This article focuses on the association between young adults’ debt problems and parental financial support: the extent to which indebted young adults receive financial help from their parents. We also investigate the extent to which specific benefits are associated with debt problems or parental financial support. The data were gathered in an online survey conducted among 18‐to‐35‐year‐old Finns (n = 1,019). The results revealed, first, that many parents safeguard their indebted adult children’s lives by means of financial support and second, that heavy cash‐welfare‐benefit users are particularly likely to receive parental financial support. Our analysis also revealed that the prevalence of debt problems as well as of parental financial support were especially high among those who had received social assistance, sickness benefit or labour‐market subsidy within the previous 12 months. In a society open to new social risks as well as to debt problems, young people who lack financial support from their parents have a rockier transition to adulthood than those who receive support.

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Section: Discussionmentioning

confidence: 99%

Section: The Multidimensional Nature Of Young Adults’ Debt Problems Amentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Parental financial support: A safety net for young adults with debt problems

Majamaa

Rantala

2019

Int J Consumer Studies

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“…Furthermore, there are very few nationally representative longitudinal studies on financial debt during early adulthood (Dwyer, Hodson, & McCloud, 2013;Dwyer et al, 2011Dwyer et al, , 2012Houle, 2013Houle, , 2014Sweet, Nandi, Adam, & McDade, 2013). Mostly Nordic researchers have so far used registerbased data for the analysis of financial problems (e.g., Aaltonen, Oksanen, & Kivivuori, 2016;Kauppinen et al 2014;Oksanen, Aaltonen, & Rantala, 2015). It is particularly difficult for traditional survey methods to reach those who are not in employment, education, or training.…”

mentioning

confidence: 99%

Debt problems, home‐leaving, and boomeranging: A register‐based perspective on economic consequences of moving away from parental home

Oksanen

Aaltonen

Majamaa

et al. 2017

Int J Consumer Studies

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This article analyses the development of financial problems after leaving one's parental home, and considers how financial problems are associated with likelihood of boomeranging (i.e., adult children returning to parental home). The 9‐year follow‐up study focused on a nationally representative sample of Finnish young people between the ages of 15 and 25 who moved out from their parental home between 2006 and 2009 (n = 9,196). The measure of debt problems was based on monthly data on debt enforcement, a legal matter which may bring serious consequences for the debtors. The primary within‐individual, longitudinal analyses showed that debt problems increased directly after leaving parental home. Education and family background were significant predictors of debt problems in the four years after leaving parental home. Early leavers had significantly more debt problems than later leavers. Debt problems were associated with a higher likelihood of moving back to parental home. The results imply that it is important to support economic decision‐making during early adulthood.

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