Abstract
This study aims to examine the association of assets with life satisfaction patterns among Korean older adults aged 50 and above. This study used the first two panel data sets (2005 and 2007) from the Korean Retirement and Income Study, which collected information from a nationally representative sample. Key independent variables include financial assets, real assets, and debts. This study classifies overall patterns of life satisfaction using seven multi-dimensional items via Latent Class Analysis. Multinomial regression models were used to determine factors related to estimated life satisfaction patterns after the data were adjusted by weighting and multiple imputation. This study found three classes of life satisfaction at both waves: low, moderate, and high. During the 2-year study period, significant portions of older adults moved upward (23%) and downward (22%) in their life satisfaction patterns. Consistent with the asset effect theory, this study found that assets and debts are significantly associated with life satisfaction patterns and longitudinal changes in these patterns. The study findings suggest that older adults’ life satisfaction can be maintained or promoted through economic security. Financial planning programs combined with asset accumulation may help older adults to achieve economic security and associated life satisfaction.
Similar content being viewed by others
References
An, J., An, K., O’Conner, L., & Wexler, S. (2008). Life satisfaction, self-esteem, and perceived health status among elder Korean women: Focus on living arrangements. Journal of Transcultural Nursing, 19(2), 151–160.
Barger, S. D., Donoho, C. J., & Wayment, H. A. (2008). The relative contribution of race/ethnicity, socioeconomic status, health, and social relationships to life satisfaction in the United States. Quality of Life Research, 18, 179–189.
Bergman, L. R., & Magnusson, D. (1997). A person-oriented approach in research on developmental psychopathology. Development and Psychopathology, 9, 291–319.
Bruner, L. P. (2005). Understanding life satisfaction among Korean American adults: A stress and coping approach. Dissertation Abstracts International, 65(10-B), 5389.
Chen, C. (2001). Aging and life satisfaction. Social Indicators Research, 54, 57–79.
Dew, J. (2007). Two sides of the same coin? The differing roles of assets and consumer debt in marriage. Journal of Family and Economic Issues, 28, 89–104.
Dew, J. (2009). The gendered meanings of assets for divorce. Journal of Family and Economic Issues, 30, 20–31.
Fagerström, C., Borg, C., Balducci, C., et al. (2007). Life satisfaction and associated factors among people aged 60 years and above in six European countries. Applied Research in Quality of Life, 2, 33–50.
Fogel, S. J., Smith, M. T., & Williamson, A. R. (2008). Owning a home: New opportunities and challenges for low-income women. Journal of Poverty, 12, 102–123.
Gudmunson, C. G., Beutler, I. F., Israelsen, C. L., McCoy, J. K., & Hill, E. J. (2007). Linking financial strain to marital instability: Examining the roles of emotional distress and marital interaction. Journal of Family and Economic Issues, 28, 357–376.
Han, C.-K. (2009, January). Asset-building policy in Korea, Singapore, and Taiwan: A comparative perspective. Paper presented at the International Conference, Co-Sponsored by Association of Public Policy and Management (APPAM), Singapore.
Idler, E. L., & Benyamini, Y. (1998). Life satisfaction as a health predictor. Kuopio: Kuopio University Publications D.
Jang, H., & Lee, C. (1996). A study on the life satisfaction of the aged: Past, present, and future. Journal of the Korea Gerontological Society, 16(2), 137–150.
Jung, J. Y., Oh, Y. H., Oh, K. S., Suh, D. W., Shin, Y. C., & Kim, H. J. (2007). Positive-thinking and life satisfaction amongst Koreans. Yonsei Medical Journal, 48(3), 371–378.
Koivumaa-Honkanen, H., Honkanen, R., Viinamaki, H., Heikkila, K., Kaprio, J., & Koskenvuo, M. (2000). Self-reported life satisfaction and 20-year mortality in healthy Finnish adults. American Journal of Epidemiology, 152, 983–991.
Koivumaa-Honkanen, H., Honkanen, R., Viinamaki, H., Heikkila, K., Kaprio, J., & Koskenvuo, M. (2001). Life satisfaction and suicide: A 20-year follow-up study. American Journal of Psychiatry, 158, 433–439.
Kwon, J. D., & Cho, J. Y. (2000). A study of factors influencing the life satisfaction of the aged. Journal of the Korea Gerontological Society, 20(3), 61–76.
Lee, E. S., & Forthofer, R. N. (2006). Analyzing complex survey data (2nd ed.). Newberry Park, CA: Sage.
Lee, K. S., & Ono, H. (2008). Specialization and happiness in marriage: A U.S.–Japan comparison. Social Science Research, 37, 1216–1234.
Levy, A. (2009). A theory of happiness-wealth relationship with status-sensitive communication. The Journal of Socio-Economics, 38, 168–172.
Li, Q. (2005). Subjective well-being and mortality in Chinese oldest old. MPIDR Working Paper, No. 2005-011, Max Planck Institute for Demographic Research, Rostock, Germany.
Li, Y., Aranda, M. P., & Chi, I. (2007). Health and life satisfaction of ethnic minority older adults in mainland China: Effects of financial strain. International Journal of Aging and Human Development, 64(4), 361–379.
Lichter, D. T., & Carmalt, J. H. (2008). Religion and marital quality among low-income couples. Social Science Research, 38, 168–187.
Long, J. S. (1997). Regression models for categorical, limited dependent variables (7th ed.). London: Sage.
MaeKyung Economy Magazine (2009, April). Happy when I have more than assets of 1 billion won and income of 4 million won, No. 1500, pp. 12–15.
McCutcheon, A. L. (2002). Latent class analysis. Sage University Paper Series on Quantitative Applications in the Social Sciences, No. 07-064. Sage, Newberry Park, CA.
McKernan, S. M., & Sherraden, M. (2008). Asset building and low-income families. Washington, DC: The Urban Institute Press.
Mentzakis, E., & Moro, M. (2008). The poor, the rich and the happy: Exploring the link between income and subjective well-being. The Journal of Socio-Economics, 28, 147–158.
Nam, S. (2008, June). Analysis of household asset distribution and factors of asset poverty: Korean Labor and Income Panel Survey (KLIPS). Paper presented at the 9th Korean Labor and Income Panel Survey (KLIPS) Conference, Seoul, Korea. [In Korean].
Nam, S., & Kwon, S. (2008). Asset distribution, inequality, and poverty among elderly households in Korea. Korea Institute for Health and Social Affairs. Research on Welfare and Health, 28(2), 3–32. [In Korean].
OECD. (2007). Society at a glance: OECD social indicators. Paris, France: Organization for Economic Co-Operation and Development.
Parks-Yancy, R., DiTomaso, N., & Post, C. (2007). The mitigating effects of social and financial capital resources on hardships. Journal of Family and Economic Issues, 28, 429–448.
Scanlon, E., & Page-Adams, D. (2001). Effects of asset holding on neighborhoods, families, and children: A review of research. CSD Research Report, Washington University, Center for Social Development, St. Louis, MO.
Schreiner, M., & Sherraden, M. (2007). Can the poor save? Saving and asset accumulation in individual development accounts. Piscataway, NJ: Transaction Publishers.
Sherraden, M. (1991). Assets and the poor: A new American welfare policy. Armonk, NY: M.E. Sharpe.
Song, Y. I. (1992). Life satisfaction of the Korean American elderly from a socio-psychological analysis. Korea Journal of Population and Development, 21(2), 225–241.
Yamaguchi, K. (2000). Multinomial logit latent-class regression models: An analysis of the predictors of gender-role attitudes among Japanese women. American Journal of Sociology, 105, 1702–1740.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Han, CK., Hong, SI. Assets and Life Satisfaction Patterns Among Korean Older Adults: Latent Class Analysis. Soc Indic Res 100, 225–240 (2011). https://doi.org/10.1007/s11205-010-9613-8
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11205-010-9613-8