Selection into Financial Education and Effects on Portfolio Choice

Irina Gemmo, Pierre-Carl Michaud and Olivia Mitchell

CIRANO Working Papers from CIRANO

Abstract: To examine how financial education affects financial outcomes, one must evaluate whether and how sample selection may bias inferences regarding program impacts. Our incentivized experiment reveals how such selection influences estimated financial education effects. The more financially literate and those expecting higher gains pay more to purchase education, while those who consider themselves very financially literate pay less. Using portfolio allocation tasks, we show that the financial education increases portfolio efficiency and welfare by almost 20 and 3 percentage points, respectively. In our setting, selection does not greatly influence estimated program effects, comparing those participating and those who do not. Pour examiner comment l'éducation financière affecte les résultats financiers, il faut évaluer si et comment la sélection de l'échantillon peut biaiser les conclusions concernant l'impact du programme. Notre expérience incitative révèle comment une telle sélection influence les effets estimés de l'éducation financière. Les personnes les plus instruites sur le plan financier et celles qui s'attendent à des gains plus importants paient davantage pour acquérir une éducation, tandis que celles qui se considèrent comme très instruites sur le plan financier paient moins. En utilisant des tâches d'allocation de portefeuille, nous montrons que l'éducation financière augmente l'efficacité du portefeuille et le bien-être de près de 20 et 3 points de pourcentage, respectivement. Dans notre contexte, la sélection n'influence pas beaucoup les effets estimés du programme, en comparant les participants et les non-participants.

Keywords: Financial Education; Financial Literacy; Portfolio Choice; Selection; Éducation financière; littératie financière; choix du portefeuille; sélection (search for similar items in EconPapers)
JEL-codes: G11 G41 G53 (search for similar items in EconPapers)
Date: 2023-09-28
New Economics Papers: this item is included in nep-exp and nep-fle
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://cirano.qc.ca/files/publications/2023s-21.pdf

Related works:
Working Paper: Selection into Financial Education and Effects on Portfolio Choice (2023)
Working Paper: Selection into Financial Education and Effects on Portfolio Choice (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2023s-21

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