The impact of job quality on household risky financial asset allocation

Amid the backdrop of uniform household asset allocation and limited participation in financial markets, this study utilizes data from the 2017 and 2019 “China Household Finance Survey” (CHFS) to examine the impact of job quality (JQ) on household allocation of risky financial assets. The results indicate that improvements in JQ significantly encourage households to invest in risky financial assets, as reflected by increases in the likelihood of holding such assets, the total value of holdings, and the share of total financial assets allocated to risk. These findings remain robust across multiple tests. Mechanism analyses reveal that JQ indirectly affects risky asset allocation by enhancing both household financial literacy and technological lifestyle. Additionally, heterogeneity analyses show that the influence of JQ is more pronounced among urban households and those located in the Eastern, Central, and Northeastern regions of China. Based on these insights, the paper recommends enhancing JQ, strengthening financial literacy programs, advancing financial technology development, and promoting regional coordination to bridge financial decision-making gaps across urban–rural and regional divides, thereby facilitating household wealth accumulation through more diversified asset portfolios. • Improvements in job quality significantly promote households' allocation of risky financial assets. • Job quality indirectly influences risky financial asset allocation by enhancing household financial literacy and technological lifestyle. • The effects of job quality are more pronounced among urban households and in the Eastern, Central, and Northeastern regions in China.