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Financial Hardship, Depression, and Self-Esteem: Temporal Analysis Using a Korean Panel Study.

Minjae Choi^1,2, Eun Hae Lee², Joshua Kirabo Sempungu³

¹Institute for Future Public Health, Korea University, Seoul, Republic of Korea.

Psychiatry Investigation

|February 1, 2023

Summary

Financial hardship significantly increases depression risk, with self-esteem acting as a key mediator. Addressing financial difficulties and psychological well-being is crucial for managing depression.

Keywords:

Depression Financial hardship Mental health Self-esteem

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Area of Science:

Social Science
Psychology
Public Health

Background:

Financial hardship is a known risk factor for depression.
The specific pathways and mediating factors, such as self-esteem, require further investigation.

Purpose of the Study:

To examine the effect of changes in financial hardship on depression.
To determine if self-esteem mediates the relationship between financial hardship and depression.

Main Methods:

Utilized data from 99,588 observations of 15,331 individuals across 10 waves of the Korean Welfare Panel Study.
Employed generalized estimation equations to analyze the association between financial hardship changes and depression.
Assessed the mediating role of self-esteem in this relationship.

Main Results:

Changes in financial hardship were significantly associated with depression.
Experiencing severe or increasing financial hardship strongly predicted depression.
Self-esteem mediated the link, with persistent hardship leading to lower self-esteem and subsequent depression.

Conclusions:

Financial hardship is a critical factor influencing depression.
Interventions targeting financial difficulties and psychological well-being are essential for depression management.