Journal Article

Econ Focus: Why Don't More Young People Buy Stocks?


Abstract: Standard life-cycle models of portfolio choice suggest that individuals should participate in the stock market throughout their lives. Yet the data show that this is not typically the case early in life. Rather, there is a pattern of high human capital investment (that is, acquiring skills that the labor market values) and low stock market participation in youth, a pattern that reverses as individuals age.

Keywords: investment; youth; stock market; human capital;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Econ Focus

Publication Date: 2022

Issue: 2Q

Pages: 29