EMPLOYMENT TYPE, RESIDENTIAL STATUS AND CONSUMER FINANCIAL CAPABILITY: EVIDENCE FROM CHINA HOUSEHOLD FINANCE SURVEY

Abstract

Research on consumer financial capability is important for consumer financial wellbeing and emerging in the literature. However, studies on consumer financial capability in the Chinese context remain limited. To fill up the research gap, we used data from the 2011 China Household Finance Survey to investigate whether employment type and residential status were associated with consumer financial capability in China. Consumer financial capability was measured by the range of financial assets. Results from OLS and Poisson regressions showed that people employed in the government-managed system, with urban residence registration and with non-local rural residence registration had a better financial capability than their respective counterparts. The results have policy implications for improving consumer financial education and supporting vulnerable consumers.