IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v43y2022i6p2003-2015.html
   My bibliography  Save this article

Effects of financial literacy on graduate school attitudes amidst COVID‐19

Author

Listed:
  • Kam C. Chan
  • Samuel Chang
  • Jean C. Snavely

Abstract

This study examines the relationship between financial literacy and student attitudes toward graduate school. In the framework of human capital theory, we argue that graduate school is an investment in an individual's human capital that enhances future earnings capability. We hypothesize that during a weakened job market in conjunction with the COVID‐19 pandemic that students who are more financially literate will demonstrate a more positive attitude toward a graduate degree as an appealing and rewarding capital investment than students with less financial literacy. Our robust results are consistent with our hypothesis. We argue that these findings have significant economic implications.

Suggested Citation

  • Kam C. Chan & Samuel Chang & Jean C. Snavely, 2022. "Effects of financial literacy on graduate school attitudes amidst COVID‐19," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2003-2015, September.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:6:p:2003-2015
    DOI: 10.1002/mde.3504
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3504
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3504?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lisa Barrow & Jonathan Davis, 2012. "The upside of down: postsecondary enrollment in the Great Recession," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 36(Q IV), pages 117-129.
    2. Hsiao, Yu-Jen & Tsai, Wei-Che, 2018. "Financial literacy and participation in the derivatives markets," Journal of Banking & Finance, Elsevier, vol. 88(C), pages 15-29.
    3. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    4. Gathergood, John & Weber, Jörg, 2017. "Financial literacy: A barrier to home ownership for the young?," Journal of Urban Economics, Elsevier, vol. 99(C), pages 62-78.
    5. Michal Grinstein-Weiss & Shenyang Guo & Vanessa Reinertson & Blair Russell, 2015. "Financial Education and Savings Outcomes for Low-Income IDA Participants: Does Age Make a Difference?," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(1), pages 156-185, March.
    6. Misty L. Heggeness, 2020. "Estimating the immediate impact of the COVID-19 shock on parental attachment to the labor market and the double bind of mothers," Review of Economics of the Household, Springer, vol. 18(4), pages 1053-1078, December.
    7. Riccardo Calcagno & Chiara Monticone, 2015. "Financial Literacy and the Demand for Financial Advice," Post-Print hal-02313173, HAL.
    8. Barr, Andrew & Turner, Sarah, 2015. "Out of work and into school: Labor market policies and college enrollment during the Great Recession," Journal of Public Economics, Elsevier, vol. 124(C), pages 63-73.
    9. Pirmin Fessler & Maria Silgoner & Rosa Weber, 2020. "Financial knowledge, attitude and behavior: evidence from the Austrian Survey of Financial Literacy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(4), pages 929-947, November.
    10. Meier, Stephan & Sprenger, Charles D., 2013. "Discounting financial literacy: Time preferences and participation in financial education programs," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 159-174.
    11. William R. Emmons & Ana Hernández Kent & Lowell R. Ricketts, 2019. "Is College Still Worth It? The New Calculus of Falling Returns," Review, Federal Reserve Bank of St. Louis, vol. 101(4), pages 297-329.
    12. Guichuan Deng & Jing Shi & Yanli Li & Yin Liao, 2021. "The COVID‐19 pandemic: shocks to human capital and policy responses," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5613-5630, December.
    13. Calcagno, Riccardo & Monticone, Chiara, 2015. "Financial literacy and the demand for financial advice," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 363-380.
    14. Dillon, Eleanor W., 2017. "The college earnings premium and changes in college enrollment: Testing models of expectation formation," Labour Economics, Elsevier, vol. 49(C), pages 84-94.
    15. Webber, Douglas A., 2016. "Are college costs worth it? How ability, major, and debt affect the returns to schooling," Economics of Education Review, Elsevier, vol. 53(C), pages 296-310.
    16. Derek Messacar & Tomasz Handler & Marc Frenette, 2021. "Predicted Earnings Losses from Graduating during COVID-19," Canadian Public Policy, University of Toronto Press, vol. 47(2), pages 301-315, June.
    17. Damon Clark, 2011. "Do Recessions Keep Students in School? The Impact of Youth Unemployment on Enrolment in Post‐compulsory Education in England," Economica, London School of Economics and Political Science, vol. 78(311), pages 523-545, July.
    18. Jamila Abaidi Hasnaoui & Syed Kumail Abbas Rizvi & Krishna Reddy & Nawazish Mirza & Bushra Naqvi, 2021. "Human capital efficiency, performance, market, and volatility timing of asian equity funds during COVID-19 outbreak," Journal of Asset Management, Palgrave Macmillan, vol. 22(5), pages 360-375, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ziyuan Lyu & Li Wei, 2021. "Information sources and participation in the Chinese insurance market: knowledge as a mediator," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 46(1), pages 79-106, January.
    2. Bellofatto, Anthony & Broihanne, Marie-Hélène & D'Hondt, Catherine, 2019. "Appetite for information and trading behavior," LIDAM Discussion Papers LFIN 2019002, Université catholique de Louvain, Louvain Finance (LFIN).
    3. Yasmeen Ansari & Mansour Saleh Albarrak & Noorjahan Sherfudeen & Arfia Aman, 2022. "A Study of Financial Literacy of Investors—A Bibliometric Analysis," IJFS, MDPI, vol. 10(2), pages 1-16, May.
    4. Pan, Xuefeng & Wu, Weixing & Zhang, Xuyang, 2020. "Is financial advice a cure-all or the icing on the cake for financial literacy? Evidence from financial market participation in China," International Review of Financial Analysis, Elsevier, vol. 69(C).
    5. David Aristei & Manuela Gallo, 2021. "Financial Knowledge, Confidence, and Sustainable Financial Behavior," Sustainability, MDPI, vol. 13(19), pages 1-21, September.
    6. Billari, Francesco C. & Favero, Carlo A. & Saita, Francesco, 2023. "Online financial and demographic education for workers: Experimental evidence from an Italian Pension Fund," Journal of Banking & Finance, Elsevier, vol. 151(C).
    7. Tian, Guangning & Zhou, Shuyuan & Hsu, Sara, 2020. "Executive financial literacy and firm innovation in China," Pacific-Basin Finance Journal, Elsevier, vol. 62(C).
    8. García-Pérez-de-Lema, Domingo & Ruiz-Palomo, Daniel & Diéguez-Soto, Julio, 2021. "Analysing the roles of CEO's financial literacy and financial constraints on Spanish SMEs technological innovation," Technology in Society, Elsevier, vol. 64(C).
    9. Azra Zaimovic & Anes Torlakovic & Almira Arnaut-Berilo & Tarik Zaimovic & Lejla Dedovic & Minela Nuhic Meskovic, 2023. "Mapping Financial Literacy: A Systematic Literature Review of Determinants and Recent Trends," Sustainability, MDPI, vol. 15(12), pages 1-30, June.
    10. Litterscheidt, Rouven & Streich, David J., 2020. "Financial education and digital asset management: What's in the black box?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    11. Sergio Longobardi & Margherita Maria Pagliuca & Andrea Regoli, 2018. "Can problem-solving attitudes explain the gender gap in financial literacy? Evidence from Italian students’ data," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(4), pages 1677-1705, July.
    12. Fujiki, Hiroshi, 2020. "Cash demand and financial literacy: A case study using Japanese survey data," Japan and the World Economy, Elsevier, vol. 54(C).
    13. Kramer, Marc M., 2016. "Financial literacy, confidence and financial advice seeking," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 198-217.
    14. Hiroshi Fujiki, 2019. "Who needs guidance from a financial adviser? Evidence from Japan," Working Papers on Central Bank Communication 011, University of Tokyo, Graduate School of Economics.
    15. Oscar A. Stolper & Andreas Walter, 2017. "Financial literacy, financial advice, and financial behavior," Journal of Business Economics, Springer, vol. 87(5), pages 581-643, July.
    16. Liu, Bofan & Lu, Bin, 2023. "Can financial literacy be a substitute for financial advisers? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    17. Zaheer Ahmed & Umara Noreen & Suresh A.L. Ramakrishnan & Dewi Fariha Binti Abdullah, 2021. "What explains the investment decision-making behaviour? The role of financial literacy and financial risk tolerance," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 11(1), pages 1-19.
    18. Marotta, Giuseppe, 2020. "Behind the success of dominated personal pension plans: sales force and financial literacy factors," Journal of Pension Economics and Finance, Cambridge University Press, vol. 19(4), pages 532-547, October.
    19. Steffen Westermann & Scott J. Niblock & Jennifer L. Harrison & Michael A. Kortt, 2020. "Financial Advice Seeking: A Review of the Barriers and Benefits," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 367-388, December.
    20. Tran Huynh, 2023. "Financial Literacy and Mortgage Payment Delinquency?," Jena Economics Research Papers 2023-007, Friedrich-Schiller-University Jena.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:43:y:2022:i:6:p:2003-2015. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.