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Job stability and household financial vulnerability: Evidence from field surveys in China

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  • Wu, Kai
  • Wan, Shijia

Abstract

We examine the relationship between job stability and household financial vulnerability using a sample of households from the China Family Panel Studies in 2014, 2016, and 2018. Results show that higher job stability reduces household financial vulnerability, particularly among rural families, families in central and western China, and families with low-wage income. The findings indicate that a secure job can make families more resilient to the impacts of external shocks. Our findings call on policymakers and government agencies to provide stable employment policies for households to improve their financial security.

Suggested Citation

  • Wu, Kai & Wan, Shijia, 2023. "Job stability and household financial vulnerability: Evidence from field surveys in China," Finance Research Letters, Elsevier, vol. 58(PC).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323009261
    DOI: 10.1016/j.frl.2023.104554
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    More about this item

    Keywords

    Job stability; Financial vulnerability; Regional heterogeneity;
    All these keywords.

    JEL classification:

    • G50 - Financial Economics - - Household Finance - - - General
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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