Predictors
of Economic Hardship Among Middle-Aged and Older Adults
Anne
S. Welch and Fay Lomax Cook
Abstract
Because the economic circumstances of the elderly
have improved dramatically in the past 30 years and there is no
longer a strong relationship between old age and economic need,
some argue that age is now irrelevant in understanding economic
hardship. We test the relevance of age by examining the extent to
which the same factors predict economic hardship regardless of whether
one is old or middle aged. Using data from the national survey,
Americans' changing Lives, we compare the factors associated
with economic hardship among the elderly to those of middle-aged
adults. Rather than measuring economic hardship with the traditional
income-based poverty threshold, we use respondents' reports of economic
difficulties that they have actually experienced. We test the importance
of demographic, social, family, psychological, and health factors
on the likelihood of experiencing economic hardship in four age
groups: 45-54, 55-64, 65-74, and 75+. We find adults ages 55-64
and 65-74 have the most similar patterns of predictors with repondents
significantly more likely to experience economic difficulty if they
have low household income, are a racial minority, live in larger
households, are in poor health, have a low sense of "mastery,"
and have few social supports. Fewer predictors in the model explain
economic hardship in the 75+ group. We speculate why predictors
of economic hardship are so similar for ages 55-64 and 65-74, and
why our model explains so much less of the variance in economic
hardship among the oldest old than among the other three age groups.
We conclude that the circumstances related to economic hardship
are not exactly the same across all age gorups in the second half
of life. Age may be becoming less relevant than it once was in understanding
economic hardship, but it is still not entirely irrelevant.
Ann S. Welch, School
of Education and Social Policy, Northwestern University
Fay Lomax Cook, School of Education and Social Policy,
Northwestern University
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