An Empirical Study On Residents’ Education Level And Family Debt Structure

The stability of household finance is the cornerstone of the stability of the financial system,and the fragility of household finance measures the possibility of consumers’ families experiencing financial difficulties.In recent years,the rhythm of Chinese residents adding leverage has obviously improved,and there is a structural difference in debt,which has a significant impact on economic and financial development.Many studies have proved that financial literacy,financial knowledge and other factors have a significant impact on household debt and household financial fragility.However,there are few domestic studies on household debt structure and household financial vulnerability from the perspective of residents’ education level.Therefore,the author first analyzes the current situation of household debt structure and residents’ education level in China by statistics of China Economic Network data and China Education Finance Household Survey data;secondly,based on the sample data of Chinese household tracking survey in 2018,the ordered Probit model is used to analyze the influencing factors and marginal effects of household financial fragility,and instrumental variable method is used to test whether there are endogenous problems in explanatory variables.In addition,based on the sample data of 2017 China Education Household Finance Survey and China Household Finance Survey,Logit model is used to analyze the impact of residents’ education level on the possibility of household debt,Tobit model is used to analyze the impact of residents’ education level on debt-to-income ratio,and Ols linear model is used to analyze the impact of residents’ education level on bank loans and private loans.The results show that the lower the education level of family members is,the higher the family financial vulnerability is;for the families with low mortgage expenditure,the impact of education level on family financial vulnerability is stronger;the degree of family aging and the size of family population have a positive impact on family financial vulnerability,while the level of urbanization has a negative impact.The education level of residents has a significant impact on the degree of housing,education,health care and financial assets and liabilities;the education level of parents in the family has a significant impact on agriculture and industry and commerce,health care and financial assets and liabilities.The level of family urbanization significantly affects the degree of debt of housing and education;the level of family political literacy significantly affects the degree of debt of housing and education;the family population density significantly affects the degree of debt of housing,family cars and medical care;the level of family aging significantly affects the degree of debt of housing and family cars.The impact of residents’ education level on the degree of housing debt is mainly reflected in bank loans,and the impact on education debt is mainly reflected in private loans.The improvement of residents’ education level has led to an increase in the leverage ratio of household housing debt.This paper empirically analyzes the impact of residents’ education level on household financial fragility and household debt structure.The research results can provide reference for preventing and resolving major financial risks and controlling macro leverage ratio.