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Economic-financial Literacy and (Sustainable) Pension Reforms: Why the Former is a Key Ingredient for the Latter

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  • Elsa Fornero

    (University of Turin and CeRP-Collegio Carlo Alberto)

Abstract

Financial literacy has important implications for economic reforms. Reforms are meant to change people’s behavior and their effectiveness crucially depends on the ability of citizens to recognize and generally approve their necessity, their general design, and their “sense of direction.” Without basic understanding by citizens, reforms risk having little or no effect or even being reversed. Informed judgment about economic reforms requires information and numeracy as well as literacy. This is particularly true of pension reforms because of their profound impact on people’s life plans. The 2011 Italian pension reform is a case in point.

Suggested Citation

  • Elsa Fornero, 2015. "Economic-financial Literacy and (Sustainable) Pension Reforms: Why the Former is a Key Ingredient for the Latter," Bankers, Markets & Investors, ESKA Publishing, issue 134, pages 6-16, January-F.
  • Handle: RePEc:rbq:journl:i:134:p:6-16
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    References listed on IDEAS

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    Cited by:

    1. Flavia Coda Moscarola & Elsa Fornero & Steinar Strøm, 2016. "Absenteeism, childcare and the effectiveness of pension reforms," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-18, December.

    More about this item

    Keywords

    Financial Education; Economic-financial Literacy; Public Pensions; Pension Reforms;

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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