The Effects of Schooling on Wealth Accumulation Approaching Retirement

Paul Bingley () and Alessandro Martinello
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Paul Bingley: SFI - The Danish National Centre for Social Research, Postal: Herluf Trolles Gade 11, DK- 1052 Copenhagen, Denmark

No 2017:9, Working Papers from Lund University, Department of Economics

Abstract: Education and wealth are positively correlated for individuals approaching retirement, but the direction of the causal relationship is ambiguous in theory and has not been identified in practice. We combine administrative data on individual total wealth with a reform expanding access to lower secondary school in Denmark in the 1950s, finding that schooling increases pension annuity claims but reduces the non-pension wealth of men in their 50's. These effects grow stronger as normal retirement age approaches. Labour market mechanisms are key, with schooling increasing job mobility, reducing housing equity, increasing leverage, and improving occupational pension benefits.

Keywords: Education; Wealth; Labour market mechanisms; Pensions; Housing equity; Portfolio composition; Instrumental variable (search for similar items in EconPapers)
JEL-codes: D31 G11 I24 I26 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2017-06-12
New Economics Papers: this item is included in nep-age, nep-edu, nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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