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on Financial Literacy and Education |
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Issue of 2025–12–08
six papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Piera Bello (Bergamo University); Marius Cziriak (ZEW – Leibniz Centre for European Economic Research); Mario Padula (Ca’ Foscari University of Venice) |
| Abstract: | Fees play a critical role in shaping the pension benefits provided by defined contribution (DC) pension funds. Even small differences in fees, when compounded over a long contribution period, can lead to substantial disparities in retirement income. In this study, we focus on Chile — a country with a large, mandatory DC pension system — to examine how individuals choose among pension fund administrators. Despite a regulated fee structure that ensures transparency and the absence of switching costs, we observe significant fee dispersion across providers and low switching rates among participants. Our findings reveal that individuals with higher financial literacy and a better understanding of the institutional framework are significantly more likely to switch providers, thereby minimizing fees. |
| Keywords: | Fees, defined contribution pension funds, investment mistakes, investor sophistication |
| JEL: | D14 G53 H55 J32 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ven:wpaper:2025:26 |
| By: | Fahmida Khatun; Muntaseer Kamal; Foqoruddin Al Kabir; Preetilata Khondaker Huq |
| Abstract: | In today’s world, technology plays a pivotal role in shaping economic activities by driving growth in both industrial and service sectors. Digital literacy has the potential to empower youth and women by providing access to education, economic opportunities, and social participation, thus fostering a more inclusive society. |
| Keywords: | technology empowerment, digital literacy, youth empowerment, women empowerment, digital skills development, inclusive growth, social participation, industrial growth |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:pbrief:69 |
| By: | Ayinde, Opeyemi E.; Oloyede, Adeola O.; Miranda, Mario J.; Omotesho, Kemi; Ayinde, Kayode; Ayinde, Love J. |
| Keywords: | Agricultural Finance, Financial Economics, Consumer/Household Economics |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343827 |
| By: | Valarezo-Unda, Angel; Capilla, Javier; Pérez-Amaral, Teodosio; Garcia-Hiernaux, Alfredo; López, Rafael |
| Abstract: | Using the 2014 – 2021 waves of Spain's ICT-H household panel, we track Internet trust for 59, 648 internet users across 130, 013 person-year observations. A correlated random-effects ordered-probit model shows that improvements in digital skills and first-hand use of transactional services are the strongest and most consistent predictors of higher trust, while traditional socio-economic markers play a secondary role. Once skill levels are controlled, age differences largely vanish, but women still report lower trust and the pandemic years register a notable dip, pointing to attitudinal and systemic factors that skill policies alone cannot solve. The findings highlight the need for advanced skill training, guided initial transactions and robust consumer safeguards, particularly for women and low-income users, if Spain is to close its remaining trust gap and achieve inclusive digitalization. |
| Keywords: | Internet trust, digital inclusion, socio-economic determinants, panel data, digital skills, Eco-RETINA, Spain, ICT-H survey |
| JEL: | C33 D83 L86 O33 O35 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itse25:331314 |
| By: | Meredith Welch |
| Abstract: | Using anonymized consumer credit bureau data, I examine the credit market consequences of student loan delinquency and default and the role that student loan servicers play in contributing to borrower outcomes. I exploit random assignment of student loan borrowers to student loan servicers of varying quality to study the direct effect of servicers on borrowers’ credit outcomes and to isolate variation in the likelihood of default that is not correlated with borrower characteristics. I find that being assigned to a higher-default servicer increases a borrower’s likelihood of default by approximately 6%. However, there is a precisely estimated null effect of servicer assignment on measures of borrowers’ likelihood of financial distress, credit access, and zip code characteristics. These findings suggest that averting a servicer-induced default does not yield considerable benefits for marginal borrowers’ credit outcomes but that servicers are meaningful drivers of student loan repayment outcomes. |
| Keywords: | higher education finance; student loans; student loan default; student loan servicer; consumer credit |
| JEL: | I22 D14 G28 |
| Date: | 2025–12–03 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedpwp:102192 |
| By: | Layton, Roslyn; Potgieter, Petrus H.; Prescod, Kwesi |
| Abstract: | This paper investigates the persistent digital divide in the Caribbean, where approximately 46% of the population lacks access to 5G, and only 1.9 million households benefit from fiber-to-the-home (FTTH) connectivity. The study identifies factors contributing to inadequate broadband deployment, including geographic challenges, insufficient investment, and regulatory barriers. Drawing on a comprehensive survey of broadband providers across 21 Caribbean nations, the research reveals significant investment gaps, estimating costs of USD $8.6 to $12.9 billion to achieve universal FTTH and 5G access. The paper critically analyzes market dynamics between broadband and major content providers, highlighting a lack of equitable cost-sharing mechanisms and inadequate regulatory frameworks. It advocates for policy interventions and innovative business models to stimulate infrastructure investments, suggesting that collaborative approaches, possibly inspired by models in South Korea and the US, could foster sustainable digital inclusion, economic growth, and social development, particularly benefiting marginalized and rural communities. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itse25:331289 |