Childhood Exposure and Stock Market Participation
39 Pages Posted: 30 Nov 2016
Date Written: November 28, 2016
This research studies the childhood exposure effect on stock market participation. We find that individuals with rural childhoods are less likely to invest in the stock market, controlling for wealth, trust, social interaction, risk attitude, and financial literacy. Furthermore, we find evidence that the trait of openness mitigates the enduring effect of rural childhood exposure, which is consistent with a cultural explanation.
Keywords: Childhood exposure, Stock market participation, Openness
JEL Classification: D12, D14, Z19
Suggested Citation: Suggested Citation