The poverty trap: A multinational study examining the relation between poverty, stress, financial literacy, and decision making
Supervisor
Mr Eike K. Buabang, KU Leuven
Team
Communications Officer: Katarina Kastelic
Junior Researcher: Sarah Ashcroft-Jones
Junior Researcher: Celia Esteban Serna
Junior Researcher: Jakob Kveder
Junior Researcher: Amanda Lambertus
Junior Researcher: Tasja S. Müller
Project outline
According to Eurostat, in 2016 17.3% of the people in the European Union had an income below the at-risk-of-poverty threshold. Recent studies have found that those living in poverty and experiencing financial stress are prone to making more short-sighted decisions. As a consequence of these decisions, it becomes more difficult to escape financial hardship; a vicious cycle that has been labeled the poverty trap.
In this multinational study (Belgium, Germany, Ireland, Italy, Kazakhstan, the Netherlands, Slovenia, Spain, and the United Kingdom) we investigate the relation between poverty, stress, financial literacy, and decision making. To do so, we adapt and validate respective measures in each of these countries. We aim to contribute to the understanding of poverty and decision making across languages and borders.