The Causal Mechanism of Financial Education : Evidence from Mediation Analysis

Carpena, Fenella ; Zia, Bilal

World Bank, Washington, DC

关键词: FINANCIAL SERVICES;    FINANCIAL INCLUSION;    FINANCIAL EDUCATION;    FINANCIAL LITERACY;    FINANCIAL KNOWLEDGE;   

DOI  :  10.1596/1813-9450-8619
RP-ID  :  WPS8619

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper uses a field experiment inIndia with multiple financial education treatments toinvestigate the causal mechanisms between financialeducation and financial behavior. Focusing on the mediatingrole of financial literacy, the paper proposes a broaderdefinition of financial knowledge that includes threedimensions: numeracy skills, financial awareness, andattitudes toward personal finance. The analysis then employscausal mediation analysis to investigate the proportion ofthe treatment effect that can be attributed to these threechannels. Strikingly, numeracy does not mediate any effectsof financial education on household outcomes. For simplefinancial actions such as budgeting, both awareness andattitudes serve as critical pathways, while for more complexfinancial activities such as opening a savings account,attitudes play a more prominent role. These findingsunderscore the importance of changing perceptions aboutfinancial products and services as a vital mechanism for thesuccess of financial education.