1 option
Unpacking the Causal Chain of Financial Literacy / Carpena, Fenella
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Carpena, Fenella
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Access & Equity in Basic Education.
- Access to Finance.
- Causal Mechanism.
- Education For All.
- Finance and Financial Sector Development.
- Financial Knowledge.
- Financial Literacy.
- Impact Evaluation.
- Primary Education.
- Private Sector Development.
- Local Subjects:
- Access & Equity in Basic Education.
- Access to Finance.
- Causal Mechanism.
- Education For All.
- Finance and Financial Sector Development.
- Financial Knowledge.
- Financial Literacy.
- Impact Evaluation.
- Primary Education.
- Private Sector Development.
- Physical Description:
- 1 online resource (36 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2011
- System Details:
- data file
- Summary:
- A growing body of literature examines the causal impact of financial literacy on individual, household, and firm level outcomes. This paper unpacks the mechanism of impact by focusing on the first link in the causal chain. Specifically, it studies the experimental impact of financial literacy on three distinct dimensions of financial knowledge. The analysis finds that financial literacy does not immediately enable individuals to discern costs and rewards that require high numeracy skills, but it does significantly improve basic awareness of financial choices and attitudes toward financial decisions. Monetary incentives do not induce better performance, suggesting cognitive constraints rather than lack of attention are a key barrier to improving financial knowledge. These results illuminate the strengths and limitations of financial literacy training, which can inform the design and anticipated effects of such programs.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.