Job stability and household financial vulnerability: Evidence from field surveys in China

We examine the relationship between job stability and household financial vulnerability using a sample of households from the China Family Panel Studies in 2014, 2016, and 2018. Results show that higher job stability reduces household financial vulnerability, particularly among rural families, families in central and western China, and families with low-wage income. The findings indicate that a secure job can make families more resilient to the impacts of external shocks. Our findings call on policymakers and government agencies to provide stable employment policies for households to improve their financial security.