Research featured in The Times: How Denmark Taught Its Children to Be Better Off
New research by PhD student Johanna Sophie Jost, featured in The Times, shows how early financial windfalls can shape young people’s entry into the stock market.
Research by our PhD student Johanna Sophie Jost has been featured in The Times in an article titled “How Denmark Taught Its Children to Be Better Off.”
In her new working paper, First Fortunes: How Youth Windfalls Shape Stock Market Entry, Johanna examines how financial windfalls received in adolescence — such as payouts from child savings accounts (børneopsparing) and confirmation gifts, influence when young people begin investing in the stock market.
Drawing on comprehensive Danish register data, the study finds that these windfall events trigger a marked increase in stock market participation among teenagers. Even relatively modest sums received at key ages lead to the largest year-on-year rise in first-time stock market entry observed at any stage of life in Denmark. Importantly, the findings suggest that early financial experiences can have lasting effects, shaping long-term investment behaviour.
The research highlights the importance of timing in financial decision-making. Rather than focusing solely on income levels or financial literacy, the paper shows how specific financial events act as catalysts for market participation. Understanding when individuals first enter the stock market is central to fostering a broader and more inclusive equity culture.
At the Center for Corporate Governance at Copenhagen Business School, we are committed to advancing research that deepens our understanding of financial behaviour and participation in capital markets. Johanna’s work contributes new insights into how early-life financial opportunities can influence economic engagement across the life course.
Read the full coverage in The Times here: https://www.thetimes.com/money/family-finances/article/how-denmark-taught-its-children-to-be-better-off-5rcclxxzn
