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Does education improve financial outcomes? Quasi-experimental evidence from Britain

Listed author(s):
  • Daniel Gray

    ()

    (Department of Economics, University of Sheffield)

  • Alberto Montagnoli

    ()

    (Department of Economics, University of Sheffield)

  • Mirko Moro

    ()

    (Division of Economics, University of Stirling)

This paper uses two compulsory schooling reforms in Britain (1947 and 1972) to study the relationship between education and financial behaviours. Employing a regression discontinuity design to analyse nationally representative data from the UK, we find limited evidence that one extra year of schooling led to systematically different financial behaviours. One exception is the promotion of more positive saving behaviours amongst females affected by the 1947 reform. We argue that, despite clear positive spill-overs of educational reforms, desirable financial behaviours require specfic and targeted education policies and we point to the growing research in this field to support this conclusion.

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File URL: http://www.sheffield.ac.uk/economics/research/serps/articles/2017_010
File Function: First version, April 2017
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Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2017010.

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Length: 48 pages
Date of creation: Apr 2017
Handle: RePEc:shf:wpaper:2017010
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