Human Capital And Household Asset Allocation

Since the reform and opening up more than 40 years ago,China’s GDP has increased from 0.37 trillion in 1978 to 121.02 trillion in 2022,and the world ranking has risen from 11 to the second in the world.The total wealth of families has also increased rapidly,providing conditions and basis for family financial management.At the same time,the financial market is also developing rapidly,and various kinds of financial products emerge in endlessly,providing more choices for family financial management.However,because the concept of family finance appeared relatively late in China,although the concept of family finance has made some progress,there is still a large gap in the rationality of allocation compared with countries with the same level of GDP in the world.It is characterized by "high proportion of real estate and low proportion of financial assets".Many scholars have done research and analysis on the influencing factors of this phenomenon,many of which focus on non-subjective factors such as the number of children in the family,the proportion of the elderly population,the macro-external environment,housing area,and so on.Of course,there are also some studies involving subjective factors such as financial literacy,education years,and so on.External factors often play a role through internal factors.In the family financial planning,the people who plan are the leading role in the whole behavior.Therefore,this thesis focuses on the most core subjective factor of human capital.Based on the specific micro-data obtained from the survey,the measurement indicators of human capital are selected to study the impact of human capital on family financial planning behavior,hoping to provide some reference for families,financial institutions,and the government,so as to improve the property income of residents to a greater extent,and improve the capital utilization rate and circulation speed of the whole society.The data used in this thesis is from the China Household Finance Survey(CHFS)of Southwestern University of Finance and Economics.First,the Probit model is established to analyze the impact of human capital on whether to participate in the financial market and stock market in family financial management;Then a Tobit model is established to further study and analyze the impact of human capital on household financial income and stock balance after participating in the financial market.After the study,it is found that the improvement of various indicators of human capital can make families more willing to participate in the activities of the financial market and the stock market,that is,improving the level of human capital has a significant positive impact on family financial planning.From the perspective of depth,the improvement of human capital is also conducive to the improvement of family property income and has a significant positive impact.In the process of research,this thesisr also referred to some external factors that affect family finance,and found that the total household debt,the proportion of the elderly population in the family,and the housing area have a negative correlation with family participation in the financial market and the stock market;Other factors of human capital,such as total family income,marital status,household registration type,education,entertainment and other consumption expenditure,have a significant positive correlation with family financial planning.At the end of this thesisr,we test the heterogeneity of the impact of household financial management on the participation of financial assets and the amount of participation through the differentiation of household total income and agricultural and urban household registration;After selecting the instrumental variables,the estimation results are analyzed endogenously;At the end,the data of the first and last 5%of all samples were eliminated and the robustness test was conducted.The estimated results have passed the robustness test...