Effect of Parental Education Level on the Risky Financial Asset Allocation of Offspring Families

Using data from the China Household Finance Survey, this study investigates how parental education level affects the risky financial asset allocation of offspring households via the Probit and Tobit models. Results show that the parents” education level significantly and positively impacts the probability and proportion of risky financial assets investment in offspring families and are still robust after using instrumental variables for the endogeneity test. The mechanism test shows that parents” educational level can improve the investment probability and proportion of risky financial assets of children’s families by increasing the income of children’s families and the education level of the heads of children’s families.