Employee output response to stock market wealth shocks

• 成果类型: Article
• 署名作者: Li, Teng; Qian, Wenlan; Xiong, Wei A.; Zou, Xin
• 署名单位: Sun Yat Sen University; Sun Yat Sen University; National University of Singapore; University of Hong Kong; Shenzhen Stock Exchange (SZSE); Hong Kong Baptist University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.11.005
• 发表日期: 2022
• 页码: 779-796
• 关键词: Stock investment return; Stock market wealth; consumption; labor supply; reference dependence; household finance

摘要

This paper uses individual-level data linking stock investments with work performance to examine how changes in stock market wealth affect worker output. We document that a 10% increase in monthly income from stock market investments is associated with a decrease of 3.8% in the same investor's next-month work output. The negative output re-sponse is not driven by concurrent economic conditions and is unexplained by investor -specific liquidity needs. Consistent with the reference dependence interpretation, the re-sponse is short-lived and the effect is stronger when the total income has reached a ref-erence income. Overall, our results highlight a novel channel of transmitting stock market fluctuation through labor supply.(c) 2021 Elsevier B.V. All rights reserved.