Limitations of Combining Hispanics and African-Americans for Analysis of Credit Problems

Lee, J. & Hanna, S.D. (2012). Limitations of combining Hispanics and African-Americans for analysis of credit problems. Journal of Consumer Affairs, 46 (3), 506-536.

Posted: 5 Jul 2012 Last revised: 6 Apr 2015

See all articles by Jonghee Lee

Jonghee Lee

Independent

Sherman D. Hanna

Ohio State University (OSU)

Date Written: July 4, 2012

Abstract

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 were 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.

Keywords: Debt delinquency, Racial/Ethnic Disparity, Survey of Consumer Finances

JEL Classification: D14, D91, E5, G21, J15

Suggested Citation

Lee, Jonghee and Hanna, Sherman D., Limitations of Combining Hispanics and African-Americans for Analysis of Credit Problems (July 4, 2012). Lee, J. & Hanna, S.D. (2012). Limitations of combining Hispanics and African-Americans for analysis of credit problems. Journal of Consumer Affairs, 46 (3), 506-536. . Available at SSRN: https://ssrn.com/abstract=2100580

Jonghee Lee

Independent ( email )

No Address Available

Sherman D. Hanna (Contact Author)

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

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