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Source: International Journal of Consumer Studies
Resulting in 1 citation.
1. Letkiewicz, Jodi C.
Heckman, Stuart J.
Repeated Payment Delinquency Among Young Adults in the United States
International Journal of Consumer Studies published online (21 March 2019): DOI: 10.1111/ijcs.12522.
Also: https://onlinelibrary.wiley.com/doi/10.1111/ijcs.12522
Cohort(s): NLSY97
Publisher: Wiley Online
Keyword(s): Debt/Borrowing; Financial Behaviors/Decisions; Modeling, Probit; Personality/Big Five Factor Model or Traits; Student Loans

Permission to reprint the abstract has not been received from the publisher.

There is concern in the United States about young adults falling behind financially due to the increased use of student loans and low wages. This study investigates payment delinquency as a measure of financial distress to better understand how young adults might be struggling. Personality traits are incorporated into the model to determine the extent to which behavioral factors are correlated with financial behand if they predict a habit trend of payment delinquency. The 1997 National Longitudinal Survey of Youth (NLSY97), a nationally representative longitudinal dataset, is used in the study. A random effects probit model and a dynamic random effects probit model are used to examine late bill pay (harassed by bill collectors) and late rent or mortgage payments (more than 60 days late) over a period of eight years (2007-2015). Results from the analysis indicate that payment delinquency in a previous period increases the likelihood of payment delinquency by 10 percentage points in a subsequent period. Conscientiousness decreases the likelihood by 2.1 percentage points, while neuroticism increases the likelihood by 1.6 percentage points.

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Bibliography Citation
Letkiewicz, Jodi C. and Stuart J. Heckman. "Repeated Payment Delinquency Among Young Adults in the United States." International Journal of Consumer Studies published online (21 March 2019): DOI: 10.1111/ijcs.12522.