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

Publication type

Research Paper

Authors

Daniel Gray, Alberto Montagnoli and Mirko Moro

Publication date

Series Number

2017010

Summary

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 specific and targeted education policies and we point to the growing research in this field to support this conclusion.

Subjects

Education, Savings And Assets, Household Economics, Debt: Indebtedness and Finance

Links

Related Publications

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