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Household Stock Market Participation During the Great Financial Crisis

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  • Jie Zhou

Abstract

Using the Panel Study of Income Dynamics, this paper studies American households’ stock market participation in 2007–2009, a period that saw a major stock market downswing. After controlling for standard household characteristics, we estimate that the stock ownership in 2009 dropped 2.9 percentage points – a 5.9% decline – compared to that in 2007. We find evidence that less-educated households, poor households and households with heads belonging to a minority are more likely to drop out of the market after the market crash. We also compare the change in the stock ownership during the crisis period with other 2-year periods over 2003–2013.

Suggested Citation

  • Jie Zhou, 2018. "Household Stock Market Participation During the Great Financial Crisis," Departmental Working Papers 2018-02, The University of Winnipeg, Department of Economics.
  • Handle: RePEc:win:winwop:2018-02
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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