The Effect Of Household Debt On Children Structure

Affected by the traditional concept of life,most families prefer to save money rather than take on debts.However,this kind of situation is changing.From 2009 to 2019,the growth rate of deposits in China’s residential sector showed a downward trend,from 18% to 7%,and the deposit amount also decreased significantly.The deposit amount of China’s financial institutions was the lowest in the past 39 years.At the same time,the debt level of Chinese households is also undergoing great changes.The total debt of Chinese households has increased by ten times,the leverage ratio of Chinese households has increased from 18% to50%,and the ratio of households’ debt to income has increased from 20% to 80%.Both the macro-economic indicators "resident leverage ratio" and micro-economic indicators "debt-toincome ratio" that reflect the debt level of residents have undergone major changes in the past decade,which represent that the debt decision-making of Chinese households has also changed.This phenomenon should be paid enough attention to.This paper explores the influence of the children’s structure on household debt from the perspective of China’s population structure.In this paper,the data of Chinese Family Finance Survey(CHFS)in 2017 were used.Firstly,the Probit model was used to make an empirical analysis on whether the children structure holds the household debt.At the same time,Tobit model was used to empirically analyze the influence of children structure on household debt.Secondly,in order to make the empirical results more scientific and objective,the endogeneity problem was overcome,and then the robustness test was performed.Finally,the influence of the children structure on the amount of debt was divided into three groups: head of household age,urban-rural difference and household income.The main empirical conclusions of this paper are as follows: 1.The number of children and the number of boys have a significant positive impact on the household holding debt,while the number of girls has a significant negative impact on the household holding debt.2.The number of children and the number of boys have a significant positive impact on the household debt,while the number of girls has a significant negative impact on the household debt.3.The number of boys mainly influences the amount of household debt by affecting the housing debt.The research of this paper provides new evidence for understanding the micro-influencing factors of household debts and the relationship between the children’s structure and household debts.This also can provide a reference for related policy making.