nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2019‒01‒14
three papers chosen by

  1. Active Learning Improves Financial Education: By Kaiser, Tim; Menkhoff, Lukas
  2. Economic competence in early secondary school: Evidence from a large-scale assessment in Germany By Oberrauch, Luis; Kaiser, Tim
  3. Islamic Microfinance Experience in a Secular State: Case of Benin By Seck, Ousmane

  1. By: Kaiser, Tim (University of Koblenz-Landau and DIW Berlin); Menkhoff, Lukas (DIW Berlin)
    Abstract: We conduct a randomized field experiment to study the effects of two financial education interventions offered to small-scale retailers in Uganda. The treatments contrast \"active learning\" with \"traditional lecturing\" within standardized lesson-plans. We find that active learning has a positive and economically meaningful impact on savings and investment outcomes, in contrast to insignificant impacts of lecturing. These results are not conditional on prior education or financial literacy. Tentative evidence suggests that only active learning stimulates several cognitive and non-cognitive mechanisms; moreover, a social mechanism may be at play as treated individuals join social groups discussing financial matters.
    Keywords: financial behavior; financial literacy; active learning; lecturing; training method; field experiment;
    JEL: I21 A20 D14 O16
    Date: 2018–12–20
  2. By: Oberrauch, Luis; Kaiser, Tim
    Abstract: We employ a psychometrically validated performance test to study economic competence among a large and representative sample of early secondary school students in Southwest Germany. The rich dataset allows us to study variation in economic competence across school types and observable student characteristics. Our results show that economic competence is significantly lower among female students, migrants, students with parents of low socioeconomic status and those who do not attend the highest track school type. Additionally, quantile regression analyses suggest that the gender gap increases along the distribution of economic competence and that effects of parents with high socio-economic status are more pronounced above the median of the competence distribution. Our analysis sets the stage for a long-term study of economic competence among secondary school students and the impact of a recent curriculum reform introducing mandatory economic education.
    Keywords: Economic competence,economic literacy,item response theory,pre-college economic education,gender gap
    JEL: A21 I21
    Date: 2018
  3. By: Seck, Ousmane (The Islamic Research and Teaching Institute (IRTI))
    Abstract: Islamic finance has gained interest in Muslim as well as non-Muslim countries as financial markets are trying to attract capital from investors in search of investment opportunities in accordance with Islamic principles. While the industry is growing on fertile grounds in countries such as Malaysia, the United Arab Emirates, Saudi Arabia, a mix of other countries such as the United Kingdom, Luxemburg, Hong Kong, Senegal, South Africa etc., have tapped into that market by issuing Sukuk or Islamic bonds, although their regulatory frameworks are not designed for their specificities. In 2010, Benin, a former French colony, which inherited its secular constitution has introduced Islamic microfinance without modifying its regulatory framework. The objectives in this paper are three-fold: review the microfinance policy, the regulatory framework and its relevance to the effective functioning of Islamic microfinance. The paper also presents the experience of Benin in Islamic microfinance, and the evaluation of its impact in a policy environment characterized by secularism that implies exclusion of religious specificities. Using a combination of evaluation studies, survey of stakeholders and experts in Islamic microfinance in Benin, and complementary interviews, this research finds that the impact of Islamic microfinance is not separable from the impact of the overall microfinance sector in which it is blended. The impact appears to be positive in terms of contributing to the improvement of living conditions, and loosening the financing constraints on households and small and medium enterprises through additional financial resources.
    Keywords: Islamic microfinance; Poverty alleviation; Financial Inclusion; SMEs; Africa
    Date: 2017–05–30

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