Research On The Imapct Of Non-agricultural Employment On The Allocation Of Financial Assets Of Rural Households

Compared to cities,the financial market development in rural areas of China is not deep enough,and residents’ subjective financial and investment awareness is not strong.The financial assets held by households are still mainly deposits and cash.With the widespread use of agricultural machinery and the improvement of agricultural labor productivity,rural labor is gradually liberated from the constraints of agricultural land and engaged in non agricultural industries.The non agricultural occupation of rural residents has become an inevitable trend.While rural residents have achieved career transformation,they have also diversified their family income sources,and the income level and structure of rural households are undergoing significant changes.Will the transformation of rural residents’ careers help optimize their household financial asset allocation? How did it affect it?This article uses the 2019 data from the China Household Finance Survey(CHFS)to study the impact and mechanism of non agricultural employment on rural household financial asset allocation.This study examines the financial asset allocation behavior of rural households from three dimensions: participation in the rural household financial market,proportion of household financial asset allocation,and diversity of household financial asset allocation.Probit and Tobit models are used to empirically analyze the impact of non agricultural employment of rural households on the three.Simultaneously using instrumental variable methods to alleviate estimation bias caused by endogeneity issues.Subsequently,based on the urban level and household asset level,a heterogeneity analysis was conducted on the impact of non agricultural employment on the financial asset allocation behavior of rural households.Finally,the reliability of the benchmark regression results was tested using the replacement explanatory variable method and propensity score matching method.The research conclusions of this article are as follows:(1)Non agricultural employment to some extent inhibits rural households’ participation in the financial market;(2)Non agricultural employment can significantly increase the proportion of rural household financial asset allocation and enrich the diversity of household financial asset allocation.The results of mechanism testing indicate that(3)non agricultural employment increases the proportion of households holding financial assets by increasing wage income;(4)Non agricultural employment enhances the diversity of household financial asset allocation by easing liquidity constraints.The results of heterogeneity analysis indicate that(5)The impact of non agricultural employment on the proportion and diversity of rural households’financial asset allocations is more pronounced among rural middle-asset households.Based on the research findings,suggestions are proposed to expand the proportion of middle-income households,accelerate the promotion of rural labor force to engage in non agricultural occupations,strengthen financial knowledge promotion and education in rural areas,and stimulate the financial needs of rural residents.