IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp15402.html
   My bibliography  Save this paper

Does State-Mandated Financial Education Reduce High School Graduation Rates?

Author

Listed:
  • Urban, Carly

    (Montana State University)

Abstract

Concerned about low levels of financial literacy among teens and the importance of their looming financial decisions as emerging adults, state policymakers have expanded high school personal finance graduation requirements. Did these added requirements create an additional barrier for students? Comparing students in states with and without standalone personal finance course requirements before and after the requirements went into place, there is no evidence that these requirements reduced graduation rates overall, by race, by gender, or by family income. Existing research quantifies improvements in debt and credit behaviors, and these findings suggest there are not simultaneous adverse effects overall or for at-risk students.

Suggested Citation

  • Urban, Carly, 2022. "Does State-Mandated Financial Education Reduce High School Graduation Rates?," IZA Discussion Papers 15402, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15402
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp15402.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bernheim, B. Douglas & Garrett, Daniel M. & Maki, Dean M., 2001. "Education and saving:: The long-term effects of high school financial curriculum mandates," Journal of Public Economics, Elsevier, vol. 80(3), pages 435-465, June.
    2. Kalena E. Cortes & Joshua S. Goodman & Takako Nomi, 2015. "Intensive Math Instruction and Educational Attainment: Long-Run Impacts of Double-Dose Algebra," Journal of Human Resources, University of Wisconsin Press, vol. 50(1), pages 108-158.
    3. Kaiser, Tim & Menkhoff, Lukas, 2020. "Financial education in schools: A meta-analysis of experimental studies," Economics of Education Review, Elsevier, vol. 78(C).
    4. Urban, Carly & Schmeiser, Maximilian & Collins, J. Michael & Brown, Alexandra, 2020. "The effects of high school personal financial education policies on financial behavior," Economics of Education Review, Elsevier, vol. 78(C).
    5. Meta Brown & John Grigsby & Wilbert van der Klaauw & Jaya Wen & Basit Zafar, 2016. "Financial Education and the Debt Behavior of the Young," The Review of Financial Studies, Society for Financial Studies, vol. 29(9), pages 2490-2522.
    6. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    7. Amanda Agan & Sonja Starr, 2018. "Ban the Box, Criminal Records, and Racial Discrimination: A Field Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(1), pages 191-235.
    8. Cortes, Kalena E. & Goodman, Joshua Samuel & Nomi, Takako, 2015. "Intensive Math Instruction and Educational Attainment," Scholarly Articles 34298862, Harvard Kennedy School of Government.
    9. Joshua Goodman, 2019. "The Labor of Division: Returns to Compulsory High School Math Coursework," Journal of Labor Economics, University of Chicago Press, vol. 37(4), pages 1141-1182.
    10. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    11. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    12. Baker, Andrew C. & Larcker, David F. & Wang, Charles C.Y., 2022. "How much should we trust staggered difference-in-differences estimates?," Journal of Financial Economics, Elsevier, vol. 144(2), pages 370-395.
    13. Melody Harvey, 2019. "Impact of Financial Education Mandates on Younger Consumers' Use of Alternative Financial Services," Journal of Consumer Affairs, Wiley Blackwell, vol. 53(3), pages 731-769, September.
    14. Adams, Scott & Cotti, Chad, 2008. "Drunk driving after the passage of smoking bans in bars," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1288-1305, June.
    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. Mangrum, Daniel, 2022. "Personal finance education mandates and student loan repayment," Journal of Financial Economics, Elsevier, vol. 146(1), pages 1-26.
    2. Kaiser, Tim & Lusardi, Annamaria & Menkhoff, Lukas & Urban, Carly, 2022. "Financial education affects financial knowledge and downstream behaviors," Journal of Financial Economics, Elsevier, vol. 145(2), pages 255-272.
    3. Kaiser, Tim & Lusardi, Annamaria, 2024. "Financial Literacy and Financial Education: An Overview," IZA Discussion Papers 16926, Institute of Labor Economics (IZA).
    4. Mikhail Mamonov & Anna Pestova & Steven Ongena, 2023. "“Crime and Punishment”? How Banks Anticipate and Propagate Global Financial Sanctions," CERGE-EI Working Papers wp753, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    5. Erdal Asker & Eric J. Brunner & Stephen L. Ross, 2022. "The Impact of School Spending on Civic Engagement: Evidence from School Finance Reforms," Working papers 2022-16, University of Connecticut, Department of Economics.
    6. Davidson, Carl & Heyman, Fredrik & Matusz, Steven & Sjöholm, Fredrik & Chun Zhu, Susan, 2022. "How International Experience Helps Shape Labor Market Outcomes," Working Paper Series 1453, Research Institute of Industrial Economics.
    7. Wei-Fong Pan, 2023. "Does a firm’s lobbying activity respond to its peers’ lobbying activity?," Public Choice, Springer, vol. 194(3), pages 297-324, March.
    8. Mensah, Edouard R. & Filipski, Mateusz J., 2022. "Saving for a rainy day: the impact of natural disasters on savings rates," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322266, Agricultural and Applied Economics Association.
    9. Brehm, Johannes & Pestel, Nico & Schaffner, Sandra & Schmitz, Laura, 2022. "From low emission zone to academic track: Environmental policy effects on educational achievement in elementary school," Ruhr Economic Papers 980, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    10. Clément de Chaisemartin & Xavier D’Haultfœuille, 2023. "Two-way fixed effects and differences-in-differences with heterogeneous treatment effects: a survey," The Econometrics Journal, Royal Economic Society, vol. 26(3), pages 1-30.
    11. Bigelow, Daniel P. & Kuethe, Todd, 2023. "The impact of preferential farmland taxation on local public finances," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    12. Yung-Yu Tsai & Hsing-Wen Han & Kuang-Ta Lo & Tzu-Ting Yang, 2022. "The Effect of Financial Resources on Fertility: Evidence from Administrative Data on Lottery Winners," Papers 2212.06223, arXiv.org, revised Dec 2023.
    13. Albert Chiu & Xingchen Lan & Ziyi Liu & Yiqing Xu, 2023. "What To Do (and Not to Do) with Causal Panel Analysis under Parallel Trends: Lessons from A Large Reanalysis Study," Papers 2309.15983, arXiv.org, revised Apr 2024.
    14. Asatryan, Zareh & Baskaran, Thushyanthan & Birkholz, Carlo & Hufschmidt, Patrick, 2023. "Favoritism by the governing elite," ZEW Discussion Papers 23-053, ZEW - Leibniz Centre for European Economic Research.
      • Asatryan, Zareh & Baskaran, Thushyanthan & Birkholz, Carlo & Hufschmidt, Patrick, 2023. "Favoritism by the governing elite," Ruhr Economic Papers 1029, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    15. Quang Minh Nguyen, 2023. "Impact of privatization on firm performance in Vietnam: A Staggered Difference-in-Differences analysis with heterogeneous treatment effects," Documentos de Trabajo EH-Valencia (DT-EHV) 2303, Economic History group at the Universitat de Valencia.
    16. Cardinali, Rebecca & Lusher, Lester & Taylor, Rebecca & Villas-Boas, Sofia Berto, 2022. "Stigma Goods, Self-Checkout Adoption, and Changes in Purchasing Decisions," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322427, Agricultural and Applied Economics Association.
    17. Huang, Chenchen & Luo, Di & Mukherjee, Soumyatanu & Mishra, Tapas, 2022. "To Acquire or to Ally? Managing Partners’ Environmental Risk in International Expansion," MPRA Paper 117591, University Library of Munich, Germany, revised 07 Jan 2023.
    18. Siddhartha Biswas & Mallick Hossain & David Zink, 2023. "California Wildfires, Property Damage, and Mortgage Repayment," Working Papers 23-05, Federal Reserve Bank of Philadelphia.
    19. Rik Chakraborti & Gavin Roberts, 2023. "How price-gouging regulation undermined COVID-19 mitigation: county-level evidence of unintended consequences," Public Choice, Springer, vol. 196(1), pages 51-83, July.
    20. Chy, Mahfuz & Kyung, Hoyoun, 2023. "The effect of bond market transparency on bank loan contracting," Journal of Accounting and Economics, Elsevier, vol. 75(2).

    More about this item

    Keywords

    high school graduation; personal finance; financial education;
    All these keywords.

    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iza:izadps:dp15402. 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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    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.