Financial Literacy,Household Asset Allocation,and Relative Poverty——An Empirical Research Based on CHFS
Based on micro-level data from the China Household Finance Survey and Research Center(CHFS-2019),this article utilizes the Factor Analysis and the static income poverty measurement methods to analyze and measure financial literacy and relative poverty.The diversity of household asset allocation is measured using a weighted assignment method that considers the complexity and risk level of financial products.Additionally,a Probit model is employed to empirically analyze the impact of financial literacy on relative poverty and identify the pathways through which financial literacy can alleviate relative poverty.The research findings demonstrate that inadequate financial literacy is a significant factor con-tributing to the persistent poverty among the relative poverty population,while an improvement in finan-cial literacy can significantly mitigate the issue of relative poverty.Financial literacy helps reduce the cost of accessing financial information,enhances awareness of market participation,and improves credit avail-ability.These factors assist households in better managing and allocating their assets,increasing the effi-ciency and returns of asset allocation,and ultimately alleviating relative poverty,ultimately achieving shared prosperity for everyone.
万方数据
