Vortrag
Does Financial Education Impact Financial Behavior, and if So, When?

Tim Kaiser, Lukas Menkhoff


IWH Research Seminar in Economics
Halle, 28.11.2016




Abstract:
In a meta-regression analysis of 115 microeconometric impact evaluation studies we find that financial education significantly impacts financial behavior, and to an even larger extent financial literacy. These results also hold for the subsample of RCTs. However, intervention impacts are highly heterogeneous: Financial education is less effective in low- and medium income countries; some target groups, such as low-income clients, or specific behaviors, such as borrowing, are difficult to influence; also mandatory financial education appears to be less effective. Thus, it is even more crucial for success to increase training intensity and offer financial education at a “teachable moment”.

Abstract

In a meta-regression analysis of 115 microeconometric impact evaluation studies we find that financial education significantly impacts financial behavior, and to an even larger extent financial literacy. These results also hold for the subsample of RCTs. However, intervention impacts are highly heterogeneous: Financial education is less effective in low- and medium income countries; some target groups, such as low-income clients, or specific behaviors, such as borrowing, are difficult to influence; also mandatory financial education appears to be less effective. Thus, it is even more crucial for success to increase training intensity and offer financial education at a “teachable moment”.

Tim Kaiser

Wissenschaftlicher Mitarbeiter in der Abteilung Weltwirtschaft

Lukas Menkhoff

Abteilungsleiter in der Abteilung Weltwirtschaft