Jere R. Behrman|Olivia S. Mitchell|Cindy Soo|David Bravo
Financial Literacy, Schooling, and Wealth Accumulation
University of Pennsylvania|University of Pennsylvania|National Bureau of Economic Research|University of Chile
financial literacy schooling attainment linked household wealth accumulation yet prior findings may biased due noisy measures financial literacy schooling well unobserved factors ability intelligence motivation could enhance financial literacy schooling also directly affect wealth accumulation use new household dataset instrumental variables approach isolate causal effects financial literacy schooling wealth accumulation financial literacy schooling attainment strongly positively associated wealth outcomes linear regression models approach reveals even stronger larger effects financial literacy wealth also indicates significant positive effects schooling attainment conditional financial literacy linear specification positive effects interacted financial literacy estimated impacts substantial enough suggest investments financial literacy could large positive payoffs