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on Financial Literacy and Education |
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Issue of 2024‒04‒15
five papers chosen by |
| By: | Sara Lamboglia (Bank of Italy); Noemi Oggero (University of Turin and CERP); Mariacristina Rossi (COVIP and University of Turin); Massimiliano Stacchini (Bank of Italy) |
| Abstract: | In this study, we explore whether financial literacy plays a role in shaping the career aspirations of young people. Using data collected in 2023 by the Bank of Italy on a representative sample of individuals aged 18-34, we find that financial knowledge increases the intention to become an entrepreneur. Our results are confirmed by using instrumental variable estimations. We also show that financial knowledge helps to reduce indecisiveness regarding future professional choices, making young people more focused on their aspirations. |
| Keywords: | financial literacy, entrepreneurial intention |
| JEL: | G53 L26 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_838_24&r=fle |
| By: | Luis F. Dumlao (Ateneo de Manila University); Alvin P. Ang (Ateneo de Manila University); Ser Percival K. Pena-Reyes (Ateneo de Manila University); Genesis Kelly S. Lontoc (Ateneo de Manila University); Satyabhama Andrea C. Gulapa (ACERD); Fernando T. Aldaba (Ateneo de Manila University) |
| Abstract: | Starting off from Chapter 11 (Ensure Macroeconomic Stability and Expand Inclusive and Innovative Finance) Subsection 1 (Ensure Macroeconomic Stability and Expand Inclusive and Innovative Finance) of the Philippine Development Plan 2023-2028 (PDP), we focus our research on Monetary and Financial Agenda Towards Inclusion, Consumer Protection, and Innovation. In Section IV, we revisit Republic Act 3765 or the Truth in Lending Act of 1963. In the spirit of consumer protection, we recommend regulations that are expected to improve transparency and empower consumers to make better informed decisions. In Section V, we use literature from behavioral finance on how regulators can nudge consumers to make better financial actions providing opportunities for inclusion and innovation. In Section VI, we discuss starting points for legislative discussion on how to protect retirees from financial and monetary matters as a complement and/or alternative to providing financial literacy programs. One in which our laws are relatively silent is on the treatment of whistleblowers. In Section VII, we discuss conventional practices on the treatment of whistleblowers in other jurisdictions to deter and/or catch nefarious agents and/or practices in the financial industry. In the last two sections, we acknowledge that prohibitively high interest rates on loans is a major hurdle towards inclusion. Part of the reason is that there are laws and/or regulations that charge financial institutions forcing them to pass on thecost to consumers. |
| Keywords: | financial inclusion, financial innovation, consumer protection, monetary policy |
| JEL: | G18 G21 G41 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:agy:dpaper:202407&r=fle |
| By: | Giulia Cantarini (Bank of Italy); Carola Carlizza (Bank of Italy); Pietro Gaudenzi (Bank of Italy); Lucia Sironi (Bank of Italy) |
| Abstract: | This paper describes the learning model for high-school pupils known as 'Alternanza Scuola-Lavoro' (Italian work experience programmes) or 'Transferable Skills and Guidance Programmes' (PCTO) offered by the Bank of Italy. We illustrate the characteristics of these PCTOs with a focus on the heterogeneity of participating schools, as well as on inclusivity, contributing to the ongoing debate on the relationship between education and employment. Nearly 11, 000 pupils have taken part in a total of more than 1, 000 PCTOs since 2016. The topics of greatest interest to schools are consumer protection and financial education, as well as currency circulation and payment instruments. The data gathered through pre- and post-programme questionnaires show that the PCTOs seem to foster the development of transferable skills in the pupils, in addition to improving their knowledge of the Bank of Italy's institutional functions. |
| Keywords: | school-work alternation, dual learning, financial education |
| JEL: | G53 I28 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_837_24&r=fle |
| By: | Antonietta di Salvatore (Bank of Italy); Mirko Moscatelli (Bank of Italy) |
| Abstract: | Distributional information on the debt held by households and on the characteristics of debtors is fundamental for creating and updating policy-relevant indicators and models. The primary source for this information in Italy is the Survey on Household Income and Wealth (SHIW), carried out periodically by the Bank of Italy. Its estimates, however, are affected by several types of non-sampling errors inevitably present in surveys. In this work, we use granular credit registers to improve debt estimates and determine which households are more likely to have measurement errors for their debts. The results show that integrating the SHIW with information derived from the credit registers increases household debt participation and the amount of debt households hold. Moreover, we find that households belonging to the wealthiest quintiles of the population, residing in the South and Islands, and for which the reference person has a low level of financial education are more likely not to report their loans for property purchases to the SHIW. |
| Keywords: | survey, administrative data, residential mortgages, consumer credit |
| JEL: | C83 D31 G51 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_839_24&r=fle |
| By: | Oriana De Saint Priest; Franciska Krings; Claudia Toma |
| Abstract: | Older employees often face discrimination and exclusion from work teams. In two scenario studies, we tested the impact of age diversity statements on the representation and inclusion of older employees in teams. In Study 1 (N= 304), participants were either exposed to a diversity statement or not, before selecting two teammates out of a list of four differing in age and gender for a project team. Then, we measured participants’ inclusive behavior towards a new older member joining this team. Age diversity statements were effective in boosting representation, but not inclusion. In Study 2 (N= 518), we further manipulated the content of the statement (diversity or diversity and inclusion) and the organizational motive (reputation or change). We replicated the effects of diversity statements on representation and additionally found an effect on inclusive behaviors, but only when the statement targeted diversity and inclusion while reflecting an organizational commitment to change. |
| Date: | 2024–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/369712&r=fle |