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Stock Market Participation, Work from Home, and Inequality

Author

Listed:
  • Lorenz Meister
  • Lukas Menkhoff
  • Carsten Schröder

Abstract

Stock market participation among working household heads jumped upwards in 2020 – in Germany by about 25%. A major cause is the required use of work from home (WfH). We show this by adding WfH to a large set of explanatory variables. Moreover, we implement an instrumental variables estimation based on industry-specific levels of WfH-capacity. The transmission channels seem to work via increased available time and time flexibility. Moreover, we show that WfH makes the stock market accessible to a broader population, including lower income groups, which may contribute to lower income inequality in the future.

Suggested Citation

  • Lorenz Meister & Lukas Menkhoff & Carsten Schröder, 2025. "Stock Market Participation, Work from Home, and Inequality," Discussion Papers of DIW Berlin 2138, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp2138
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    References listed on IDEAS

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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