The Korean Journal of Economic Studies
Pension Reforms and Household’s Stockholding Decisions: A Cross-country Analysis
Insook Cho(Ulsan National Institute of Science and Technology)Year 2012Vol. 60No. 2
Abstract
Using micro data sets from Korea and 11 European countries, this studyexamines how the features of pension system affect stock market participationdecision of households. Based on the results from panel data analysis, thisstudy illustrates the major determinants of household’s stock marketparticipation decision. Furthermore, using a pooled regression model, thisstudy shows that the cross-country variation in stock market participation ratescan be explained by the difference in pension system. This study suggests thatprivate pension participation rates and income replacement rates of publicpension are associated with the stock market participation rates.