What Factors Affect the Household Net Worth of Employees and Business owners?

Authors

  • Zhan (Sandy) Chen Purdue University, Consumer Sciences and Retailing
  • Sharon A. DeVaney Purdue University, Consumer Sciences and Retailing

DOI:

https://doi.org/10.61190/fsr.v11i4.4747

Keywords:

Survey of consumer finances, Net worth, Employee, Business owner

Abstract

Why do some households accumulate a prodigious amount of wealth while others have barely enough to meet their needs? This study investigates the effects of financial attitudes, financial behavior, employment, and socioeconomic factors on the household net worth of employees and business owners. Regression analysis using the 1998 Survey of Consumer Finances shows that household income has the largest impact on employees' net worth. The ownership of a large business and household income have the largest impact on business owners' net worth. Being frugal also influences business owner's net worth.

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Published

2002-12-31

How to Cite

Chen, Z. (Sandy), & DeVaney, S. A. (2002). What Factors Affect the Household Net Worth of Employees and Business owners?. Financial Services Review, 11(4), 381–391. https://doi.org/10.61190/fsr.v11i4.4747

Issue

Vol. 11 No. 4 (2002): FSR Winter 2002

Section

New Original Submission

License

Copyright (c) 2002 Academy of Financial Services

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