Human Capital and Pandemic-Related Stimulus Usage

37 Pages Posted: 21 Nov 2022

See all articles by Sabina Pandey

Sabina Pandey

Appalachian State University

Michael Guillemette

Texas Tech University - Department of Personal Financial Planning

Sarah Asebedo

Texas Tech University

Date Written: June 30, 2022

Abstract

Using nationally representative data from the 2021 National Financial Capability Study (NFCS), this study investigates the association between human capital, as proxied through education and financial knowledge, and stimulus payment usage for debt repayment, savings, and investments during the COVID-19 pandemic. The results from a sample of 23,344 observations suggest that human capital is associated positively with using stimulus payments to add to savings or invest in the stock market. This study also suggests that differences in human capital may have adversely affected wealth inequality during the COVID-19 pandemic.

Keywords: COVID-19, Stimulus Payment, Behavioral Life-Cycle Hypothesis, Marginal Propensity to Consume, Human Capital, Wealth Inequality

JEL Classification: D14, D31, D63, E21, J24

Suggested Citation

Pandey, Sabina and Guillemette, Michael and Asebedo, Sarah, Human Capital and Pandemic-Related Stimulus Usage (June 30, 2022). Available at SSRN: https://ssrn.com/abstract=4270872 or http://dx.doi.org/10.2139/ssrn.4270872

Sabina Pandey (Contact Author)

Appalachian State University ( email )

Boone, NC 28608
United States

Michael Guillemette

Texas Tech University - Department of Personal Financial Planning ( email )

1301 Akron Ave, HS-260
Box 41210
Lubbock, TX 79409-1210
United States

Sarah Asebedo

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

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