This study investigated the effects of psycho-behavioral characteristics, such as financial stress, health risk behavior, and self-efficacy, on level of life satisfaction by estimating the latent-subgroup differences using a finite mixture regression model. Results from this study describe profile of individuals struggling in multiple life situations that would affect each other and happen concurrently. The effects of financial stress, health risk behavior, and self-efficacy variables on life satisfaction differed by the detected four clusters. Compared to results from an Ordinary Least Square (OLS) regression, dynamics of certain variables were better identified when the relationship was analyzed by latent group characteristics. For example, marginal effect of smoking at different clusters offset each other, making the effect of the variable positive and significant effects of financial stress, alcohol, and locus of control financial stress, which varied by groups, became insignificant in the OLS model. The findings provide the importance of capturing difference between groups in analyzing the relationship between life satisfaction and psycho-behavioral characteristics, and suggest a need for intervention strategies to promote healthy coping mechanisms in response to life struggles.
Author(s): Jae Min Min Lee, Wookjae Heo, Narang Park
