Working Paper

The Causal Mechanism of Financial Education : Evidence from Mediation Analysis

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Carpena, Fenella
dc.contributor.author
Zia, Bilal
dc.date.accessioned
2018-10-24T17:12:40Z
dc.date.available
2018-10-24T17:12:40Z
dc.date.issued
2018-10
dc.date.lastModified
2021-06-08T14:42:48Z
dc.description.abstract
This paper uses a field experiment in India with multiple financial education treatments to investigate the causal mechanisms between financial education and financial behavior. Focusing on the mediating role of financial literacy, the paper proposes a broader definition of financial knowledge that includes three dimensions: numeracy skills, financial awareness, and attitudes toward personal finance. The analysis then employs causal mediation analysis to investigate the proportion of the treatment effect that can be attributed to these three channels. Strikingly, numeracy does not mediate any effects of financial education on household outcomes. For simple financial actions such as budgeting, both awareness and attitudes serve as critical pathways, while for more complex financial activities such as opening a savings account, attitudes play a more prominent role. These findings underscore the importance of changing perceptions about financial products and services as a vital mechanism for the success of financial education.
en
dc.identifier
http://documents.worldbank.org/curated/en/472901540223638588/The-Causal-Mechanism-of-Financial-Education-Evidence-from-Mediation-Analysis
dc.identifier.uri
http://hdl.handle.net/10986/30601
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 8619
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
FINANCIAL SERVICES
dc.subject
FINANCIAL INCLUSION
dc.subject
FINANCIAL EDUCATION
dc.subject
FINANCIAL LITERACY
dc.subject
FINANCIAL KNOWLEDGE
dc.subject
CAUSAL MEDIATION ANALYSIS
dc.subject
IMPACT EVALUATION
dc.subject
FINANCIAL AWARENESS
dc.subject
PERSONAL FINANCE
dc.title
The Causal Mechanism of Financial Education
en
dc.title.subtitle
Evidence from Mediation Analysis
en
dc.type
Working Paper
en
okr.crossref.title
The Causal Mechanism of Financial Education: Evidence from Mediation Analysis
okr.date.disclosure
2018-10-22
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/472901540223638588/The-Causal-Mechanism-of-Financial-Education-Evidence-from-Mediation-Analysis
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-8619
okr.identifier.externaldocumentum
090224b0864d4e57_1_0
okr.identifier.internaldocumentum
30532444
okr.identifier.report
WPS8619
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/472901540223638588/pdf/WPS8619.pdf
en
okr.region.administrative
South Asia
okr.region.country
India
okr.statistics.dr
472901540223638588
okr.topic
Finance and Financial Sector Development :: Financial Literacy
okr.unit
Development Research Group, Development Economics

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