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Do Employment Traits Explain Financial Literacy? Evidence from South Africa

Author

Listed:
  • Michael Graham
  • Jarkko Peltomäki

    (Stellenbosch Business School, Stellenbosch University,South Africa)

Abstract

This study explores the role of employment traits in explaining financial literacy using data from the Wave 5 of the South African National Income Dynamics Study for adults. The results show that being in employment relatively enhances financial literacy, including the components of financial literacy: interest rates, inflation, compounding and diversification. Being self-employed particularly shows up to exert positive and measurable influences on financial literacy, except for the top literacy where respondents give correct answers to all five financial literacy questions. The key lesson from the study is that self-employment, by inference entrepreneurship, is an important conduit of financial knowledge.

Suggested Citation

  • Michael Graham & Jarkko Peltomäki, 2025. "Do Employment Traits Explain Financial Literacy? Evidence from South Africa," Review of Development Finance Journal, Chartered Institute of Development Finance, vol. 15(2), pages 31-41.
    • Handle: RePEc:afj:journ3:v:15:y:2025:i:2:p:31-41
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    File URL: https://journals.co.za/doi/abs/10.10520/ejc-rdfin_v15_n2_a3
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    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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