Does Education Improve Financial Outcomes? Evidence from Stock Market and Retirement Accounts in Türkiye

Abdurrahman Aydemir and Yasar Ersan ()
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Yasar Ersan: Ankara University

No 17927, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We examine the causal effect of education on financial outcomes related to stock markets and retirement savings, leveraging a major compulsory school reform and a unique data set covering the universe of investors in Türkiye. The estimates show no effects on participation rates, portfolio composition, or return performance. Moreover, education does not appear to influence behavioral biases or heuristics in retirement plans. The reform leads to a 3% increase in pension savings for females, with no significant effect on males. Higher earnings and increased employment with employer-sponsored pension plans appear as potential mechanisms driving the wealth effect.

Keywords: Wealth; Retirement; Education; Investment Decisions (search for similar items in EconPapers)
JEL-codes: G11 G41 G50 G53 I21 I26 J32 (search for similar items in EconPapers)
Date: 2025-05
New Economics Papers: this item is included in nep-age, nep-inv and nep-lma
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