The effect of the financial crisis on physical health: Perceived impact matters

Abstract

The impact of the financial crisis on health was investigated ( N = 312). Intraindividual intercept, slope, and quadratic parameters capturing trends in income, subjective financial situation, and perceived stress across the period predicted physical health, controlling for baseline health. For those experiencing a decline in financial situation, a decrease in financial situation and an increase in perceived stress predicted poorer health; neither financial situation nor perceived stress predicted health in those not experiencing this decline. Although we cannot intervene in contextual factors like the financial crisis, health outcomes may be improved by targeting perceived impact and stress levels in those who feel affected.