nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2020‒01‒13
five papers chosen by
Viviana Di Giovinazzo
Università degli Studi di Milano-Bicocca

  1. Canadian Gender Gap in Financial Literacy: Confidence Matters By Raquel Fonseca Benito; Simon Lord
  2. The cost of steering in financial markets: evidence from the mortgage market By Leonardo Gambacorta; Luigi Guiso; Paolo Emilio Mistrulli; Andrea Pozzi; Anton Tsoy
  3. Identification of learning needs in interdisciplinary education By Marta Matul?íková; Benita Belá?ová
  4. Role of Micro finance Institutions In Promoting Financial Inclusion and Economic Growth By Naseer, Imran; Azam, Amir
  5. Regulating without Burdening: Case Study of Financial Technology in Indonesia By CANDRA FAJRI ANANDA; ABDUL MANAP PULUNGAN; RAHMIA HASNIASARI

  1. By: Raquel Fonseca Benito; Simon Lord
    Abstract: We construct a financial literacy index as well as a financial confidence index in order to evaluate the effect of confidence on financial literacy, and more specifically, on the gender gap in financial literacy. Results confirm the existence of a gender gap in financial literacy in Canada, and show that having a higher confidence in one’s financial skills and knowledge is indeed a factor that increases one’s financial literacy. Financial confidence is found not to track actual financial skills very closely across different ages, especially for women, and at older ages. We also find evidence that financial literacy and decision making are related to the relative education level of spouses. Using the Oaxaca-Blinder decomposition, confidence is also found to explain 14.15% of the gender gap in financial literacy, while being self-employed explains 19% of the gap, and taking part in the financial planning accounts for 16.76% of the gender gap difference. We find that most of the gap remains unexplained by differences in coefficients of men and women.
    Keywords: Gender,Financial Literacy,Financial Confidence,
    JEL: G0 I22 H00
    Date: 2019–12–17
  2. By: Leonardo Gambacorta; Luigi Guiso; Paolo Emilio Mistrulli; Andrea Pozzi; Anton Tsoy
    Abstract: We build a model of the mortgage market where banks attain their optimal mortgage portfolio by setting rates and "steering" customers. "Sophisticated" households know which mortgage type is best for them, while "naïve" ones are susceptible to steering by their banks. Using data on the universe of Italian mortgages, we estimate the model and quantify the welfare implications of steering. The analysis shows that banks' steering activity could generate distortions, with welfare effects that vary between households depending on their degree of sophistication. However, the introduction of measures to restrict the scope for banks to steer their customers would not necessarily increase household welfare, because such activities, even if potentially distortive, may also contain useful information. By contrast, a financial literacy campaign always has a beneficial effect on the welfare of naïve households, which are proportionately more exposed to the risk of taking inappropriate financial decisions.
    Keywords: steering, financial advice, mortgage market, consumer protection
    JEL: G21 D18 D12
    Date: 2019–12
  3. By: Marta Matul?íková (University of Economics in Bratislava); Benita Belá?ová (University of Economics in Bratislava)
    Abstract: Evaluation of the work, requirements for the performance of work activities belong to the starting factors of monitoring and identifying needs of education. Job requirements and the performance of work activities at workplace are often connected with the requirements for knowledge, skills and experience in other fields than the qualification requirements defined for the job performance. When providing medical care, the main role is played by the medical personnel: doctors, nurses, pharmacists, and other workers, who perform demanding and responsible jobs in the course of citizen health protection. Doctors do their jobs in various types of medical facilities and are situated in various functional and job positions. These facts influence the requirements for skills, economic knowledge and financial literacy, which is not required for the medical job performance. Graduates form medical branches, except for employment relation, can perform the medical job based on defined permissions, licences, and in the implementation of freelance job. A doctor is becoming an entrepreneur and frequently has to master numerous administrative and economic activities. Graduates in medical/doctoral study programmes proceed after successful performance of medical practice/clinical practice to managerial positions on line, middle but also top levels in health facilities. The job performance necessitates also demands on knowledge and skills of managerial and economic disciplines, which represent a supplement to defined requirements for the job performance.
    Keywords: education, doctoral study program, managerial position, economic and financial literacy, performance of economic activities, needs for education
    JEL: I15 I21 I22
    Date: 2019–10
  4. By: Naseer, Imran; Azam, Amir
    Abstract: Many of the developing and advanced economies are focusing on the improvement of Microfinance Institute Performance because most of the studies and empirical results support the existence of significant positive relationship between Microfinance Institute Performance and Index of Financial Inclusion and both have significant positive impact on Economic Growth and its one of the basic goal and objective of the economies to attain sustainable economic growth. Through the current study it is being tried to find the relationship between microfinance institute performance, financial inclusion and economic growth in South Asian economies using Panel data from 2009-2017 using Common Random Effect, Random and Fixed effect Model. The findings show that there is strong positive relationship between Micro finance Institute Performance, Financial Inclusion and Economic Growth. Therefore the developing economies specially Pakistan whose most of economic indicators are showing declining position can sustain their economic growth through proper utilization of Micro finance Institution Performance.
    Keywords: Micro finance Institute, Index of Financial Inclusion, Economic Growth, South Asian Region
    JEL: G23 G28
    Date: 2019–08–28
  5. By: CANDRA FAJRI ANANDA (Supervisory Board of Bank Indonesia); ABDUL MANAP PULUNGAN (Supervisory Board of Bank Indonesia); RAHMIA HASNIASARI (Supervisory Board of Bank Indonesia)
    Abstract: The financial technology (fintech) has a fundamental impact on the economy, particularly for emerging economies through improving financial inclusion and reducing the poverty level, unemployment, and income inequality (Furche et al, 2017). The rapid development of fintech should not be seen as a favourable condition alone. Several research argue that this phenomenon might impact to the existing financial industry, bank for instance (Wong, 2017; Temelkov, 2018) and at some point it will possibly run beyond the reach of regulation. Thus, regulator needs to start right to minimize the potential drawback of the fintech development including the potential disruption to the financial stability.This research employs the ?separating apples from oranges? framework from Minto et al (2017) that consists of four filters in categorizing fintech and aims to: (1) figure out the most significant part to be regulated in the fintech industry in Indonesia; (2) give an advisable input to central bank in mitigating the issue without burden the growth of fintech. It is interesing to have a further look on the fintech development in Indonesia since it gave significant contribution in the national economy. As an ecosystem of fintech, Delloitte (2016) revealed that digital economy in Indonesia led to the 2% annual GDP and 80% growth of small-medium enterprises (SME).
    Keywords: financial technology, central bank, financial regulator, regulation, regulating financial technology
    JEL: E58 O10
    Date: 2019–10

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