Arbeitspapier
Labor income risk and the reluctance of fouseholds to invest in risky financial assets: A panel data analysis
We investigate the determinants of a household's decision on whether to invest in risky financial assets. Financial theory suggests that with increasing labor income risk, the reluctance of households to hold stocks increases. We propose to measure income risk as the observed variation of household income over a five year period. We find that indeed higher income risk reduces the propensity to invest in stocks. However, when controlling for household heterogeneity as well as subjective measures of a household's financial situation (income satisfaction, worries about financial situation), the impact of observed labor income variation vanishes.
- Sprache
-
Englisch
- Erschienen in
-
Series: University of Tübingen Working Papers in Economics and Finance ; No. 72
- Klassifikation
-
Wirtschaft
Household Saving; Personal Finance
Criteria for Decision-Making under Risk and Uncertainty
Portfolio Choice; Investment Decisions
- Thema
-
household finance
risky asset market participation
labor income risk
behavioral finance
unobserved heterogeneity
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Becker, Gideon
Dimpfl, Thomas
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Tübingen, Faculty of Economics and Social Sciences
- (wo)
-
Tübingen
- (wann)
-
2014
- Handle
- URN
-
urn:nbn:de:bsz:21-dspace-527718
- Letzte Aktualisierung
- 10.03.2025, 10:43 UTC
Datenpartner
Dieses Objekt wird bereitgestellt von:
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Objekttyp
- Arbeitspapier
Beteiligte
- Becker, Gideon
- Dimpfl, Thomas
- University of Tübingen, Faculty of Economics and Social Sciences
Entstanden
- 2014
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