Living on the Edge: Access to Liquid Assets as a Determinant of Unmarried Urban Mothers' Life Satisfaction

Abstract

According to recent estimates, more than 70% of female-headed households lack access to liquid assets such as emergency cash or credit in times of need. Liquid assets support a household's ability to manage unpredictable changes in income and expenses. Aside from the economic benefits, however, to what extent does having access to resources affect subjective well-being? This study explored the effects of access to liquid assets on unmarried mothers' life satisfaction using data from the Fragile Families and Child Wellbeing Study. Controlling for socioeconomic status, health, and financial situation, unmarried mothers with even limited access to liquid assets (compared to no access) had 61% higher odds of being satisfied with life; mothers with greater access had 182% higher odds. This study provides evidence for safety net programs that aim to improve access to liquid assets in this group.