Selection into Financial Education and Effects on Portfolio Choice

Irina Gemmo, Pierre-Carl Michaud and Olivia Mitchell

Cahiers de recherche / Working Papers from Institut sur la retraite et l'épargne / Retirement and Savings Institute

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.

Keywords: Financial Education; Financial Literacy; Portfolio Choice; Selection (search for similar items in EconPapers)
JEL-codes: G11 G41 G53 (search for similar items in EconPapers)
Date: 2023
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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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:rsi:irersi:16

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