I am grateful for helpful comments from an anonymous referee, Dimitris Christelis, Elsa Fornero, Luigi Guiso, Michalis Haliassos and participants at the SAVE Conference on Economic and Psychological Aspects of Households’ Saving Behaviour: Old-age Provision, Financial Literacy and the Financial Crisis (Mannheim, June 29–30, 2009), and to the Italian Ministry of Education for financial support.
Economic Literacy: An International Comparison*
Version of Record online: 19 OCT 2010
© 2010 TheAuthor(s). The Economic Journal © 2010 Royal Economic Society
The Economic Journal
Volume 120, Issue 548, pages F429–F451, November 2010
How to Cite
Jappelli, T. (2010), Economic Literacy: An International Comparison. The Economic Journal, 120: F429–F451. doi: 10.1111/j.1468-0297.2010.02397.x
- Issue online: 19 OCT 2010
- Version of Record online: 19 OCT 2010
This article uses international panel data on 55 countries from 1995 to 2008, merging indicators of economic literacy with a large set of macroeconomic and institutional variables. Results show that there is substantial heterogeneity of financial and economic competence across countries, and that human capital indicators (PISA test scores and college attendance) are positively correlated with economic literacy. Furthermore, inhabitants of countries with more generous social security systems are generally less literate, lending support to the hypothesis that the incentives to acquire economic literacy are related to the amount of resources available for private accumulation.