Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that … model, helps to rationalize the limited participation of households in the stock market and their low holdings of risky … assets. Because households are subject to more background risk than previously considered, the estimated model implies a …

This paper primarily aims to assess the impact of financial literacy on households' investment choices. The paper … finds that financial literacy is positively and significantly associated with household investment choices. More … homogenous group-instead, gender, age, education and income levels of the households, which are showcased in this study, should …