Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161151
Authors: 
Li, Wenchao
Song, Changcheng
Xu, Shu
Yi, Junjian
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10528
Abstract: 
This paper bridges the financial market and the marriage market using a reference-dependent mechanism. Male-biased sex ratios induce families with sons to hold more risky assets, since competitive marital payment in a tight market raises the reference level of marriage expenditure for such families. Using the 2013 China Household Finance Survey data, we find that a 0.1 increase in the sex ratio raises the probability of participating in the stock market by 25.7 percent, or the stock share of liquid wealth by 42.7 percent for families with a son; there appears no effect for families with a daughter.
Subjects: 
household portfolio choice
reference dependence
prospect theory
sex-ratio imbalance
difference-in-differences estimate
JEL: 
D03
G02
G11
Document Type: 
Working Paper

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