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ERIC Number: ED512555
Record Type: Non-Journal
Publication Date: 2010-Oct
Pages: 0
Abstractor: As Provided
ISBN: N/A
ISSN: N/A
EISSN: N/A
Financial Literacy, Schooling, and Wealth Accumulation. NBER Working Paper No. 16452
Behrman, Jere R.; Mitchell, Olivia S.; Soo, Cindy; Bravo, David
National Bureau of Economic Research
Financial literacy and schooling attainment have been linked to household wealth accumulation. Yet prior findings may be biased due to noisy measures of financial literacy and schooling, as well as unobserved factors such as ability, intelligence, and motivation that could enhance financial literacy and schooling but also directly affect wealth accumulation. We use a new household dataset and an instrumental variables approach to isolate the causal effects of financial literacy and schooling on wealth accumulation. While financial literacy and schooling attainment are both strongly positively associated with wealth outcomes in linear regression models, our approach reveals even stronger and larger effects of financial literacy on wealth. Estimated impacts are substantial enough to suggest that investments in financial literacy could have large positive effects on household wealth accumulation.
National Bureau of Economic Research. 1050 Massachusetts Avenue, Cambridge, MA 02138-5398. Tel: 617-588-0343; Web site: http://www.nber.org
Publication Type: Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: National Bureau of Economic Research
Grant or Contract Numbers: N/A