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Limitations of Combining Hispanics and African Americans for Analysis of Credit Problems
Author(s) -
LEE JONGHEE,
HANNA SHERMAN D.
Publication year - 2012
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.2012.01237.x
Subject(s) - ethnic group , juvenile delinquency , debt , white (mutation) , demographic economics , household debt , race (biology) , demography , economics , psychology , criminology , political science , sociology , finance , gender studies , biochemistry , chemistry , law , gene
This study uses a combination of six Survey of Consumer Finances data sets to examine whether factors affecting credit delinquency differ by the racial/ethnic identity of households. Hispanic households are less likely than white households and white households are less likely than African American households to be delinquent. Our full model with interaction terms shows that the effects of financially adverse events, financial buffers and debt burden on the debt delinquency differ across racial/ethnic groups. Combining African American and Hispanic households into one racial/ethnic minority group as previous studies have done can be problematic.