The Influence Of Education Level On Household Financial Asset Allocation

With the rapid development of China’s economy and the improvement of people’s income level,people have higher expectations for the preservation and appreciation of wealth,and Chinese families have a stronger desire to participate in the financial market.However,"limited participation" and "heterogeneity" have always been an important issue in the allocation of household financial assets in China.At present,many researches in China focus on analyzing the influencing factors of household financial asset allocation from the perspective of economic environment,population characteristics and other social factors.Under the background of education popularization,the educational level of household head is bound to affect the asset allocation of household finance to a certain extent.To better analyze household financial decisions,this paper explores the impact of educational attainment on household financial asset allocation based on the 2019 CHFS survey data.The aim is to make people more educated,more financially literate and more involved in financial markets,thereby increasing their incomes and,in turn,the wealth of society.The main work of this paper can be summarized as the following aspects:Firstly,in terms of theory,this paper first sorts out and summarizes the existing literature,and then analyzes the allocation mechanism of household financial assets from human capital,behavioral finance,asset portfolio and other theories,and puts forward corresponding hypotheses.Secondly,in the empirical aspect,this paper takes education level as the explanatory variable,which is divided into two layers,including the participation and proportion of stock and risky financial market,and other background factors as control variables to participate in the regression of this paper.The probit and Tobit models are used for empirical analysis,and the results show that education level has a significant positive effect on household financial asset allocation.Highly educated households are more likely to participate in stocks and risky financial markets and hold a higher proportion of their shares than those with less education.Through the empirical study of the mediating effect,we find that family income and risk preference play a partial mediating role in the influence of educational level on household financial asset allocation.Through the empirical study of heterogeneity effect,it is found that there are gender heterogeneity and urban-rural heterogeneity in the impact of educational level on household financial asset allocation.Compared with women,men and cities compared with rural areas,stocks and risky financial assets investment enthusiasm and holding proportion are higher.Then,using the substitution variable method,the robustness test is carried out by substituting the education expenditure of the household last year for the education level of the household head,which proves the robustness of the conclusion of this paper.Finally,according to the conclusion of this paper,some suggestions are given to the government,financial institutions and households.The main contribution of this paper is: by analyzing the level of education,the function of family financial asset allocation from the head of the household of gender,account type,household income and risk preferences,such as Angle,are analyzed in detail by the education level of family financial asset allocation mechanism and the influence of the path,to further optimize the family financial asset allocation is of certain reference value.