Are Economists More Likely to Hold Stocks?
University of Aarhus - School of Economics and Management - CREATES
Copenhagen Business School
Juanna Schröter Joensen
Stockholm School of Economics
August 5, 2007
EFA 2006 Zurich Meetings Paper
Aarhus University Economics Paper No. 2005-06
Using a large panel data set containing detailed information on educational attainments as well as financial and socioeconomic variables for individual investors, we show that economists are more likely to hold stocks than otherwise identical investors. First, we consider the change in stockholdings associated with (i) completing an economics education and (ii) an economist moving into the household. Second, we model stock market participation using a probit model with unobserved individual heterogeneity. Third, instrumental variables estimation allows us to identify the causal effect of an economics education on stock market participation. Throughout, we focus explicitly on the effect of a change in educational status on the likelihood of holding stocks.
Number of Pages in PDF File: 35
Keywords: Investor Education, Portfolio Choice, Stock Market Participation
JEL Classification: G11, I29, J24working papers series
Date posted: April 18, 2005
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 0.750 seconds