Jianmei Zhao

This study investigates the impact of retirement on fraud exposure and victimization among the older adults in China. Using data from the China Health and Retirement Longitudinal Survey, it employs instrumental variable regression, exploiting the statutory retirement age in China as a source of exogenous variation. The findings indicate that retirement does not significant affect fraud exposure but significantly increases the risk of fraud victimization and associated financial losses for older adults. The primary channels through which retirement influences fraud victimization include changes in post-retirement time allocation and increased psychological vulnerability.

The unique feature of the rural credit market in China is the dominance of zero collateral and zero-interest reciprocal lending and its long-term coexistence with the formal loan. This paper investigates the association between formal credit constraint and prevalence of reciprocal loans in rural China. Based on the identification of rural households’ credit constraint status, we examine the effects of credit constraint on the utilization of informal reciprocal loans. We find that formal credit constraint significantly increases rural borrowers’ reliance on reciprocal loans, whereas the “debt of gratitude” imposes an uncertain obligation on rural borrowers, and discourages them from borrowing amongst relatives and friends.

Developing countries often lack an adequate social security system, and elderly parents rely heavily on their children for support. Aging populations and low-fertility rates are an emerging trend in developing countries. In this paper, we examine the effects of sibship size on individuals' internal migration decisions in China. We find that the number of siblings has a positive effect on individual migration decisions, but this effect is non-linear and marginally increasing. Second, we find that having brothers has a more significant effect on migration decisions than having sisters. Finally, although of different magnitudes, the effects are persistent across genders, Hukou status, and education levels.

The extant literature regarding the effects of housing on stock investment shows inconsistent findings, either positive or negative effects have been reported. This paper investigates the mechanisms by which housing affects household stock investment through a structure equation model (SEM). Applying the data from the China Household Finance Survey (CHFS), we confirm and quantify the magnitudes of contemporaneous “wealth effects” and “crowd-out effects” of housing on household equity investment. Overall, the combined effect of housing on stock investment is positive in the context of urban China.