The thesis consists of three research articles, each exploring different aspects of risk-taking in personal finance.

Qinglin Ouyang defends his dissertation Essays on Household Risk-Taking. Photo: Maria Stoetzer

From Employee to Entrepreneur: The Role of Unemployment Risk

This article explores what happens when job security is threatened, and whether the risk of unemployment encourages people to start their own businesses. In 2001, Swedish employment protection laws changed when the "last in, first out" rule was altered. Labour market data from that period shows that employees facing a higher risk of unemployment were more likely to become entrepreneurs. Among those affected, the share of new entrepreneurs increased by as much as 33 percent.

The effect was particularly strong among employees with longer tenure, who were newly exposed to job insecurity. Interestingly, these new businesses did not perform worse or lead to lower incomes for the founders. On the contrary, the results suggest that labour market uncertainty can prompt individuals to pursue their business ideas—with positive outcomes.

Effects of Cultural Origin on Entrepreneurship

Why are some people more willing to take risks than others? This second article investigates cultural differences in risk preferences. Using Swedish registry data on second-generation immigrants and risk tolerance data from the Global Preference Survey (GPS), the study examines how risk preferences in parents’ countries of origin affect the likelihood of starting a business.

It finds that children of immigrants from cultures with a higher appetite for risk are more likely to start businesses—although those businesses are often of lower quality. Moreover, entrepreneurs whose parents come from more risk-averse cultures tend to have lower personal incomes.

The conclusion is that culturally transmitted attitudes toward risk have significant effects beyond socioeconomic background. This suggests that risk attitudes—and thus entrepreneurial behaviour—are shaped not just by education and income, but also by the cultural values we inherit.

In and Down: The Costs of Immigrant Investors

The third article looks at how immigrant Swedes invest in the financial market, and how their performance compares to that of Swedish-born investors. Using a highly detailed administrative dataset, it reveals a significant performance gap between the two groups.
Immigrant investors experience, on average, 30% lower returns. The primary cause is a lack of diversification—failing to spread investments across different stocks or funds. As the title suggests, immigrants are “in” the market, but often “down” in terms of performance.

To understand this gap, the study examines two main factors: financial literacy and limited social networks that reduce learning opportunities. It finds that immigrants who are better integrated into Swedish society—and those from countries with higher levels of financial literacy—perform better.

However, even among second-generation immigrants, the performance gap persists. This suggests that disparities in financial outcomes are likely to continue across generations, raising concerns about long-term economic inequality.

- "When it comes to improving financial services, my research clearly shows a performance gap between immigrant and domestic investors. Trading platforms could help close this gap by offering simple investment quizzes, educational materials in multiple languages, and English-language interfaces. These steps would not only promote more equitable participation in the stock market, but also benefit both individuals and society as a whole", says Qinglin Ouyang.

Discussion between the opponent Associate Professor Elias Rantapuska and Qinglin Ouyang. Photo: Maria Stoetzer

Three key takeaways from the dissertation

Labour market uncertainty can spark innovation. When job security weakens, more people take the leap into entrepreneurship—with promising results.

Cultural background influences economic choices. Our roots shape how we view risk, which in turn affects whether we’re willing to invest or start a business.

Knowledge and networks are vital for financial success. The underperformance of immigrant investors highlights the need for better financial education and stronger integration.

At a time when working life and the economy are evolving rapidly, these findings offer valuable insights for policymakers, economists, and individuals alike.

My future research agenda aims to deepen the understanding of how households respond to different types of risk—through their consumption, savings behaviour, mortgage decisions, and investment choices. I’m convinced that households play a central role in the economy. It’s equally important that they understand their own financial behaviour. That’s why I strive to conduct research that is both academically rigorous and accessible to a broader audience,” concludes Qinglin Ouyang.

Read the thesis Essays on Household Risk-Taking

From the left: Professor Ai Jun Hou, Associate Professor Sara Jonsson, PhD Qinglin Ouyang, Associate Professor Elias Rantapuska, Associate Professor Marieke Bos, Professor Gustav Martinsson and Professor Jens Josephson. Photo: Maria Stoetzer.