Financial literacy and pension plan participation in Italy

Fornero, Elsa; Monticone, Chiara

doi:10.1017/s1474747211000473

Cited by 268 publications

(202 citation statements)

References 22 publications

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“…All these studies document a significant income gap and gender gap in financial literacy. We further confirm the relationship between financial literacy and age documented by Crossan et al (2011) for New Zealand, Fornero and Monticone (2011) for Italy, Klapper and Panos (2011) for Russia, and Lusardi and Mitchell (2011a) for the United States.…”

Section: Related Literaturesupporting

confidence: 83%

Financial Literacy and Retirement Planning in Switzerland

Brown¹,

Graf²

2013

Numeracy

156

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We use a representative survey covering 1,500 households to document the level of financial literacy in Switzerland and to examine how financial literacy is related to retirement planning. We measure financial literacy with standardized questions that capture knowledge about three basic financial concepts: Compound interest, inflation, and risk diversification. We measure retirement planning by the incidence of a voluntary retirement savings account. Our results show that financial literacy in Switzerland is high by international standards--a result which is compatible with the high ranking of Switzerland on the PISA mathematical scales. Financial literacy is lower among low-income, less-educated, and immigrant, non-native-speaking households as well as among women. We find that financial literacy is strongly correlated with voluntary retirement saving. Our results also show that financial literacy is correlated with financial market participation and mortgage borrowing.

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Section: Related Literaturesupporting

confidence: 83%

Financial Literacy and Retirement Planning in Switzerland

Brown¹,

Graf²

2013

Numeracy

156

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“…However, van Rooij et al (2012) are skeptical about the validity of the exclusion restriction for the instrumental variable they use, and they discuss the issue at length in the paper, adding a rich set of controls to their baseline specification. Other studies hinge on the idea that the respondent's financial literacy is influenced by financial knowledge of peers or reference groups Bucher-Koenen and Lusardi, 2011;Fornero and Monticone, 2011;Jappelli and Padula, 2013a;Klapper et al, 2013;Klapper and Panos, 2011;van Rooij et al, 2012). The assumption that lies behind this identification strategy is that the respondent cannot influence the peers' experience significantly, i.e., there is no "reflection problem" (Manski, 1993).…”

Section: Related Literaturementioning

confidence: 99%

“…To measure financial literacy, we follow previous literature (see, for instance, Fornero and Monticone (2011) and Lusardi and Mitchell (2007a)), and we rely on simple questions that have the characteristics pointed out by Lusardi and Mitchell (2011c), i.e., simplicity, relevance, brevity and capacity to differentiate.…”

Section: Introductionmentioning

confidence: 99%

Adult financial literacy and households’ financial assets: the role of bank information policies

2016

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We investigate the role of bank information policies in fostering the accumulation of financial knowledge. Exploiting the exogenous variability induced by the presence of a consortium of banks in Italy (PattiChiari), we find that these policies are effective for a small subsample of the population (5-10%) and lead to an increase in financial literacy by about 10%, on average. Compliance is highest among low-educated respondents older than 60 years. We use these policies as an instrumental variable to estimate the effect of financial literacy on financial assets. We find that one standard deviation increase in financial literacy determines an increase in household financial assets by 35% of a standard deviation (8,000 euros). Effects are heterogeneous in the population and highest among elderly low-educated households.

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“…(X i ) increase the relevance in the control sample of the observations that are very similar to treated students, where similarity is de…ned by the predicted probability of "participation" in a logit that explains participation with some covariates X i . 12 For our analysis we use the inverse probability weighting estimator. 13 This procedure aims to obtain estimates of the average treatment e¤ ect for the treated (ATT), that is, the average e¤ect for those in schools that teach the course.…”

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confidence: 99%

Finance for All: The Impact of Financial Literacy Training in Compulsory Secondary Education in Spain

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu We estimate the impact on objective measures of financial literacy of a 10-hours financial education program among 15-year old students in compulsory secondary schooling. We use a matched sample of students and teachers in Madrid and two different estimation strategies. Firstly, we use reweighting estimators to compare the performance in a test of financial knowledge of students in treatment and control schools. In another specification, we use school fixed-effect estimates of the effect of the course on change in the score in tests of financial knowledge. The program increased treated students' financial knowledge by between one fourth and one third of a standard deviation. We uncover heterogeneous effects, as students in private schools did not increase their knowledge much, possibly due to a less intensive implementation of the program. Secondly, we analyze the bias that arises because the set of schools that participate in financial literacy programs is not random. Such selection bias is estimated as the pre-program performance in financial PISA of students in applicant schools relative to a nationally representative sample of schools. We then study if estimators that condition on school and parental characteristics mitigate selection bias. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S

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Financial literacy and pension plan participation in Italy

Cited by 268 publications

References 22 publications

Financial Literacy and Retirement Planning in Switzerland

Financial Literacy and Retirement Planning in Switzerland

Adult financial literacy and households’ financial assets: the role of bank information policies

Finance for All: The Impact of Financial Literacy Training in Compulsory Secondary Education in Spain

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