The Relationship Between Field of Study and Stock Market Participation in the Netherlands

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2024-07
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en
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A major issue in household finance is the fact that a large number of individuals do not participate in the stock market, despite the potential benefits it may offer. Not participating in the stock market can lead to high welfare losses for individuals. The purpose of this study is to contribute to the stock market participation puzzle within the Dutch context. This study investigates the relationship between field of study and stock market participation among individuals in the Netherlands, utilizing data from the LISS panel. The study further examines the relationship between education level and stock market participation, employing a fixed effects regression analysis to control for individual-specific characteristics. The study hypothesizes that graduates from quantitative fields of study are more likely to participate in the stock market than graduates from non-quantitative fields of study. Furthermore, the study suggests, based on existing literature, that individuals with higher levels of education are more likely to participate in the stock market than those with lower levels of education. Contrary to the expectations, the findings reveal that certain non-quantitative fields of study are significantly associated with stock market participation. In addition, the results confirm that individuals with higher levels of education in the Netherlands are more likely to participate in the stock market compared to individuals with lower levels of education. Keywords: Stock market participation, field of study, education level, household finance, financial literacy, Netherlands, LISS panel, investment behavior, financial well-being.
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Faculteit der Managementwetenschappen