The Production of Financial Literacy

Giovanni Gallipoli and Sebastian Gomez-Cardona

No 20422, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We study the dynamic formation of financial competencies and show that their accrual over the life cycle does not necessarily align with educational attainment. While richer and educated households are, on average, more financially literate, the accumulation of skills varies significantly with risk tolerance and experimentation. Using data on wealth and portfolio returns, we estimate that the accumulation of financial skills over the life cycle accounts for 1/5 of cross-sectional wealth inequality by age 60.

Keywords: Inequality; Skills (search for similar items in EconPapers)
JEL-codes: E21 G11 G5 G51 H31 I24 J18 (search for similar items in EconPapers)
Date: 2025-07
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP20422 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:20422

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP20422

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().