Author(s)

Xinzhe Xu ¹, Jianyang Yi ¹

Affiliation(s)

¹ School of International Business and Management, Sichuan International Studies University, Chongqing, China

Corresponding Author

Xinzhe Xu

ABSTRACT

As a crucial component of wealth accumulation, household asset allocation decisions have become increasingly significant in the context of accelerated aging process and rising retirement savings pressure. Utilizing data from the China Household Finance Survey (CHFS) from 2015 to 2019, this paper investigates the impact of education gap among core members on households’ financial asset allocation decisions. The study reveals that: The education gap among core members has a significant negative impact on household participation in risky financial asset investments; This education gap affects the householder’s focus on economic information and the degree of risk aversion through bargaining process; An expanding education gap among core members results in a more concentrated household income source and suppresses household participation in risky financial asset investments. This research highlights that promoting the diversification of household financial asset allocation should not only focus on the decision-makers but also consider the characteristics of other core members.

KEYWORDS

Household Finance; Asset Allocation; Education Gap

CITE THIS PAPER

Xinzhe Xu, Jianyang Yi, The Impact of Education Gap on Household Financial Asset Allocation. Financial Engineering and Risk Management (2024) Vol. 7: 93-102. DOI: http://dx.doi.org/10.23977/ferm.2024.070412.

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