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Consumer credit, family education level, and human capital investment

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  • Li, Mulin
  • Wan, Bonan

Abstract

Using data from the 2018, 2020, and 2022 waves of the China Family Panel Studies, this study systematically examines the impact of consumer credit on household human capital investment and its underlying mechanisms. The findings indicate that consumer credit significantly fosters long-term household investment in human capital, primarily by increasing disposable income and enhancing educational attainment. Further analysis reveals that rural households and those with lower social costs experience a more pronounced impact from consumer credit in their human capital investments.

Suggested Citation

  • Li, Mulin & Wan, Bonan, 2025. "Consumer credit, family education level, and human capital investment," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325005276
    DOI: 10.1016/j.frl.2025.107264
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    References listed on IDEAS

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