Financial literacy and voluntary savings for retirement: novel causal evidence
Cupák, Andrej, Kolev, Gueorgui and Brokešová, Zuzana (2019) Financial literacy and voluntary savings for retirement: novel causal evidence. The European Journal of Finance, 25 (16) . pp. 1606-1625. ISSN 1466-4364 [Article] (doi:10.1080/1351847X.2019.1641123)
![[img]](https://eprints.mdx.ac.uk/style/images/fileicons/application_pdf.png) |
PDF
- Final accepted version (with author's formatting)
Download (563kB) |
Abstract
We utilise recent Household Finance and Consumption Survey microdata to report first causal effects of financial literacy on voluntary private pension schemes participation for a Central and Eastern European (CEE) country, namely Slovakia. Savings for retirement in the supplementary pension schemes are positively associated with financial literacy after controlling for a set of relevant socio-economic variables. One additional correctly answered financial literacy question leads to a 5.6 percentage points increase in the probability of having a voluntary pension savings plan in our ordinary least squares estimates. The causal impact of financial literacy increases to 19.5 percentage points when we address potential endogeneity problems by novel to the literature instrumental variables.
| Item Type: | Article |
|---|---|
| Research Areas: | A. > Business School > Economics |
| Item ID: | 27164 |
| Notes on copyright: | This is an Accepted Manuscript of an article published by Taylor & Francis in The European Journal of Finance on 22/07/2019, available online: http://www.tandfonline.com/10.1080/1351847X.2019.1641123. |
| Useful Links: | |
| Depositing User: | Gueorgui Kolev |
| Date Deposited: | 22 Jul 2019 08:41 |
| Last Modified: | 29 Nov 2022 18:46 |
| URI: | https://eprints.mdx.ac.uk/id/eprint/27164 |
Actions (login required)
 |
View Item |
Statistics
Additional statistics are available via IRStats2.
CORE (COnnecting REpositories)
CORE (COnnecting REpositories)