Education Background And Household Stock Market Participation

According to the “participation puzzle”,this paper investigate the relation between education background and household stock market participation and stock holding amounts using the CFPS(China Family Panel Studies)data.Logit and Tobit model demonstrate the positive influence of both schooling years and economy or management learning experience on stock holding.Futher,PSM model which focus on resident's major background finds that in household decision making,the significance and degree of the effect of family member's major background is restrained by the whole family's education level and his role and position in family.For stock participating tend,on the one hand,in the less-educated family,member's major background has the strong effect.On the other hand,the authority of traditional family decision maker get weaken with the increase of family education level,so family member's finance knowledge may be overvalued or underestimated due to his education position in family.Then for stock holding proportion,education background influence the proportion of stock in financial asset more compared to it in total asset.Given this,for the conversion from “negative participation” to “positive participation”,we offer some realistic solving methods.