Early Health, Risk Aversion and Stock Market Participation

52 Pages Posted: 21 May 2019

See all articles by Petri Bockerman

Petri Bockerman

Labour Institute for Economic Research; University of Turku - Turku School of Economics

Andrew Conlin

University of Oulu

Rauli Svento

University of Oulu - Department of Economics, Accounting and Finance

Abstract

To examine the relationship between early health status and financial decisions in adulthood, we link information on birth weight in 1966 from the Northern Finland Birth Cohort to data from the Finnish Central Securities Depository over the period of 1995-2010. We find that persons predisposed to poor health status in early childhood (indicated by low birth weight) avoid participating in the stock market in adulthood. The link between birth weight and stock market participation is partially explained by the fact that poor early health status leads to risk aversion. Early health status is not significantly related to the portfolio's value-growth tilt.

Keywords: health status, birth weight, stock market participation

JEL Classification: I100, G110

Suggested Citation

Bockerman, Petri and Conlin, Andrew and Svento, Rauli, Early Health, Risk Aversion and Stock Market Participation. IZA Discussion Paper No. 12341, Available at SSRN: https://ssrn.com/abstract=3390335

Petri Bockerman (Contact Author)

Labour Institute for Economic Research ( email )

FIN-00530 Helsinki
Finland
+358 9 2535 7332 (Phone)
+358 9 2535 7332 (Fax)

HOME PAGE: http://www.petribockerman.fi/

University of Turku - Turku School of Economics ( email )

Rehtorinpellonkatu 3
TURKU, FI-20500
Finland

Andrew Conlin

University of Oulu ( email )

P.O. Box 4600
Oulu FIN-90014, 90570
Finland

Rauli Svento

University of Oulu - Department of Economics, Accounting and Finance ( email )

PO Box 4600
FIN-90014 University of Oulu
Finland

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