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From academic abilities to occupation: What drives stock market participation?

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  • Vaarmets, Tarvo
  • Liivamägi, Kristjan
  • Talpsepp, Tõnn

Abstract

We study how academic abilities along with education and occupation influence stock market participation. Combining five data sets from Estonia for a sample of over 200,000 individuals allows the effect to be observed in the finest detail available. We find that women are clearly less persuaded by their mental abilities to participate in the stock market than men are. Economic activity, occupation and religion affect stock market participation, and stock market investors tend to be more ambitious, more prone to risk and more intelligent than non-participants.

Suggested Citation

  • Vaarmets, Tarvo & Liivamägi, Kristjan & Talpsepp, Tõnn, 2019. "From academic abilities to occupation: What drives stock market participation?," Emerging Markets Review, Elsevier, vol. 39(C), pages 83-100.
    • Handle: RePEc:eee:ememar:v:39:y:2019:i:c:p:83-100
    DOI: 10.1016/j.ememar.2019.04.004
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    2. Illiashenko, Pavlo & Laidroo, Laivi, 2020. "National culture and bank risk-taking: Contradictory case of individualism," Research in International Business and Finance, Elsevier, vol. 51(C).
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    5. Talpsepp, Tõnn & Liivamägi, Kristjan & Vaarmets, Tarvo, 2020. "Academic abilities, education and performance in the stock market," Journal of Banking & Finance, Elsevier, vol. 117(C).

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    More about this item

    Keywords

    Stock market participation; Education; Cognitive abilities; Non-cognitive abilities; Gender effects;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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