IDEAS home Printed from https://ideas.repec.org/a/fip/fedldw/00002.html
   My bibliography  Save this article

The Demographics of Wealth - How Age, Education and Race Separate Thrivers from Strugglers in Today's Economy. Essay No. 2: The Role of Education

Author

Listed:
  • Boshara, Ray

    () (Federal Reserve Bank of St. Louis)

  • Emmons, William R.

    () (Federal Reserve Bank of St. Louis)

  • Noeth, Bryan J.

    () (Federal Reserve Bank of St. Louis)

Abstract

New research by the Center for Household Financial Stability shows that there's a strong correlation between education and money. More of the former often leads to more of the latter. However, correlation is not causation—there is no guarantee that more education will lead to more wealth. Many other factors might be in play, such as natural ability, family environment, inheritances and even health. It's entirely possible that what's learned in the classroom has much less influence on lifetime earnings and wealth accumulation than most people believe. In fact, your ability, family background, inheritances or health might be responsible for some—perhaps a large part—of your success even if you hadn't received the education that you did.

Suggested Citation

  • Boshara, Ray & Emmons, William R. & Noeth, Bryan J., 2015. "The Demographics of Wealth - How Age, Education and Race Separate Thrivers from Strugglers in Today's Economy. Essay No. 2: The Role of Education," Demographics of Wealth, Federal Reserve Bank of St. Louis, issue 2, pages 1-28.
  • Handle: RePEc:fip:fedldw:00002
    as

    Download full text from publisher

    File URL: https://www.stlouisfed.org/~/media/Files/PDFs/HFS/essays/HFS-Essay-2-2015-Education-and-Wealth.pdf
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jeremy Greenwood & Nezih Guner & Georgi Kocharkov & Cezar Santos, 2014. "Marry Your Like: Assortative Mating and Income Inequality," American Economic Review, American Economic Association, vol. 104(5), pages 348-353, May.
    2. Joseph G. Altonji & Lisa B. Kahn & Jamin D. Speer, 2014. "Trends in Earnings Differentials across College Majors and the Changing Task Composition of Jobs," American Economic Review, American Economic Association, vol. 104(5), pages 387-393, May.
    3. Emmons, William R. & Noeth, Bryan J., 2014. "Five Simple Questions That Reveal Your Financial Health and Wealth," In the Balance, Federal Reserve Bank of St. Louis, issue 10, pages 1-3.
    4. Russell Cooper & Guozhong Zhu, 2016. "Household Finance over the Life-Cycle: What does Education Contribute?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 20, pages 63-89, April.
    5. Annamaria Lusardi & Pierre-Carl Michaud & Olivia S. Mitchell, 2017. "Optimal Financial Knowledge and Wealth Inequality," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 431-477.
    6. Emmons, William R. & Noeth, Bryan J., 2013. "Economic vulnerability and financial fragility," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 361-388.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:spr:blkpoe:v:44:y:2017:i:3:d:10.1007_s12114-017-9259-8 is not listed on IDEAS
    2. repec:spr:demogr:v:55:y:2018:i:3:d:10.1007_s13524-018-0676-5 is not listed on IDEAS
    3. Hamilton , Darrick & Darity, William A., 2017. "The Political Economy of Education, Financial Literacy, and the Racial Wealth Gap," Review, Federal Reserve Bank of St. Louis, vol. 99(1), pages 59-76.

    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:fip:fedldw:00002. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna Oates). General contact details of provider: http://edirc.repec.org/data/frbslus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.