Are Economists More Likely to Hold Stocks?

EFA 2006 Zurich Meetings Paper

Aarhus University Economics Paper No. 2005-06

35 Pages Posted: 18 Apr 2005

See all articles by Charlotte Christiansen

Charlotte Christiansen

Aarhus University - CREATES

Jesper Rangvid

Copenhagen Business School

Juanna Schrøter Joensen

University of Chicago; Institute for the Study of Labor (IZA)

Multiple version iconThere are 2 versions of this paper

Date Written: August 5, 2007

Abstract

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.

Keywords: Investor Education, Portfolio Choice, Stock Market Participation

JEL Classification: G11, I29, J24

Suggested Citation

Christiansen, Charlotte and Rangvid, Jesper and Joensen, Juanna Schrøter, Are Economists More Likely to Hold Stocks? (August 5, 2007). EFA 2006 Zurich Meetings Paper, Aarhus University Economics Paper No. 2005-06, Available at SSRN: https://ssrn.com/abstract=698721 or http://dx.doi.org/10.2139/ssrn.698721

Charlotte Christiansen (Contact Author)

Aarhus University - CREATES ( email )

Fuglesangs Alle 4
Aarhus V, DK 8210
Denmark

Jesper Rangvid

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
DENMARK

Juanna Schrøter Joensen

University of Chicago ( email )

1101 East 58th Street
Chicago, IL 60637
United States

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
256
Abstract Views
2,106
rank
130,829
PlumX Metrics