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Title: Essays on Household and Corporate Finance
Resulting in 1 citation.
1. Wang, Hui
Essays on Household and Corporate Finance
Ph.D. Dissertation, Department of Finance, The University of Texas at Dallas, 2020
Cohort(s): NLSY79
Publisher: ProQuest Dissertations & Theses (PQDT)
Keyword(s): Assets; Debt/Borrowing; Geocoded Data; Home Ownership; Household Models; Human Capital; Training

Permission to reprint the abstract has not been received from the publisher.

The first essay is "Household Financial Leverage and Human Capital Investment." In this study, I find that household leverage has a hump-shaped effect on individual's incentive to invest in human capital. Using the comprehensive information from the National Longitudinal Survey of Youth, I identify human capital investment decision based on whether an individual requests and participates in on-career skill acquisition training, and estimate household leverage based on the detailed debt and asset information. To strengthen causal inferences, I construct an instrumental variable based on changes in household's mortgage burden relative to home value resulting from plausibly exogenous housing price fluctuations across regions and over time. Overall, this study highlights the effect of household leverage on human capital investment, which provides valuable implications for decisions of both individuals and macro policymakers.
Bibliography Citation
Wang, Hui. Essays on Household and Corporate Finance. Ph.D. Dissertation, Department of Finance, The University of Texas at Dallas, 2020.