‘Caught up in a trap, I can’t walk out’: Examining the relation between financial scarcity, financial decision-making, and social exclusion

    28 May 2024

    LISS panel Grant 2019. Authors: Leon Hilbert, Frank Doolaard, Marret Noordewier (Universiteit Leiden (UL) – Faculteit der Sociale Wetenschappen).

    Many Dutch households have to deal with substantial financial problems. This can be extremely stressful and lead to poor (mental) health and also impose huge costs for society as a whole. In the proposed research, we aim to investigate how the experience of financial scarcity affects financial decision-making and social exclusion over time. A previous study we conducted with the LISS panel showed that financial scarcity relates to avoidance and delay of financial decision-making and feeling invisible in society. This grant would give us the unique opportunity to run two follow-up waves to this previous study, allowing us to collect longitudinal data and thereby helping us understand how these phenomenon affect each other over time. This data provides a base for developing effective interventions aimed at improving household financial decision-making and to tackle the effects of social exclusion.

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