Are Economists More Likely to Hold Stocks?

Posted: 8 Aug 2008

See all articles by Charlotte Christiansen

Charlotte Christiansen

Aarhus University - CREATES

Juanna Schrøter Joensen

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

Jesper Rangvid

Copenhagen Business School

Multiple version iconThere are 2 versions of this paper

Date Written: 2008

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: G11, G129, J24

Suggested Citation

Christiansen, Charlotte and Joensen, Juanna Schrøter and Rangvid, Jesper, Are Economists More Likely to Hold Stocks? (2008). Review of Finance, Vol. 12, No. 3, pp. 465-496, 2008, Available at SSRN: https://ssrn.com/abstract=1212095 or http://dx.doi.org/rfm026

Charlotte Christiansen (Contact Author)

Aarhus University - CREATES ( email )

Fuglesangs Alle 4
Aarhus V, DK 8210
Denmark

Juanna Schrøter Joensen

University of Chicago ( email )

1101 East 58th Street
Chicago, IL 60637
United States

Aarhus University ( email )

Nordre Ringgade 1
DK-8000 Aarhus C, 8000
Denmark

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

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

Jesper Rangvid

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
DENMARK

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