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

Author

Listed:
  • Daniel Gray

    (Department of Economics, University of Sheffield)

  • Alberto Montagnoli

    (Department of Economics, University of Sheffield)

  • Mirko Moro

    (Division of Economics, University of Stirling)

Abstract

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.

Suggested Citation

  • Daniel Gray & Alberto Montagnoli & Mirko Moro, 2017. "Does education improve financial outcomes? Quasi-experimental evidence from Britain," Working Papers 2017010, The University of Sheffield, Department of Economics.
  • Handle: RePEc:shf:wpaper:2017010
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    File URL: http://www.sheffield.ac.uk/economics/research/serps/articles/2017_010
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    More about this item

    Keywords

    Compulsory Schooling Laws; Education; Financial Literacy; Financial Outcomes; Regression Discontinuity;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I20 - Health, Education, and Welfare - - Education - - - General
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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