Occupational Prestige, Borrowing Constraints and Financial Market Participation
- WU Weixing, YIN Hao
- University of International Business of Economics, 100029.
Using the data of Chinese household surveys, this paper studies the impact of occupational prestige on household asset portfolio by easing credit constraints. The study finds that occupational prestige has inverted U-shaped influence on financial market participation, which cannot be explained by differences in economic characteristics, demographic characteristics and subjective perception of different households. Further research finds that, without financing constraints, households in high-prestige occupations are more likely to engage in the real estate market than in the financial market. This paper argues that higher-prestige occupations reduce the credit constraints faced by households, thus increasing their preference for real estate assets with low liquidity but high yield. This study reflects that the appeal of China's capital market to households needs to be further enhanced.
JEL：D14, G11, O16
- Occupational Reputation, Borrowing Constraints, Financial Market Participation, Investment Portfolio, Asset Allocation