Childhood experience of father's job loss and stock market participation

Antti Lehtoranta

No 30/2014, Bank of Finland Research Discussion Papers from Bank of Finland

Abstract: Using data from the Panel Study of Income Dynamics (PSID), I document that childhood experience of father's job loss decreases the propensity to own stocks as an adult. If this experience takes place at the age of 5–10 years, the probability of owning stocks decreases by 2.9 percentage points in a sample with mean stock market participation rate of 17%. This finding is robust to alternative definitions of age ranges and controlling for random unobserved effects. I also find an effect of similar magnitude in the Health and Retirement Study (HRS) data.

Keywords: stock market participation; personal experience; job loss (search for similar items in EconPapers)
JEL-codes: D03 D14 D83 G11 J64 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bofrdp:rdp2014_030

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