财务教育和学生财务素养外文文献

Please cite this article in press as Cordero J M et al Financial education and student fi nancial literacy A cross country analysis using PISA 2012 data The Social Science Journal 2019 https doi org 10 1016 j soscij 2019 07 011 ARTICLE IN PRESS G Model SOCSCI 1643 No of Pages 14 The Social Science Journal xxx 2019 xxx xxx Contents lists available at ScienceDirect The Social Science Journal journa l h om epa ge Financial education and student fi nancial literacy A cross country analysis using PISA 2012 data Jos Manuel Corderoa Mar a Gil Izquierdob Francisco Pedraja Chaparroa a Universidad de Extremadura Av Elvas sn 06006 Badajoz Spain b Universidad Aut noma de Madrid C F Tom s y Valiente 5 28049 Madrid Spain a r t i c l e i n f o Article history Received 5 February 2019 Received in revised form 18 July 2019 Accepted 18 July 2019 Available online xxx Keywords Education policy Cross country analysis Financial literacy Financial education training Multilevel regressions a b s t r a c t The aim of this research is to explore whether teaching basic fi nancial concepts at schools helps to improve students ability to apply the knowledge and skills that they learn to real life situations involving fi nancial issues and decision making measured by a standardized fi nancial literacy assessment To do this we exploit the rich set of comparative data about the countries participating in the PISA 2012 fi nancial literacy module Our empirical analysis is based on multilevel hierarchical regression modeling including country fi xed effects Our results suggest that the availability of fi nancial education is positively and signifi cantly related to students fi nancial literacy regardless of the strategy applied to teach fi nancial concepts Nevertheless it has a very small infl uence compared to the major role played by other individual and school level factors In addition we fi nd that students receiving courses taught by specialists from private institutions and non governmental organizations achieve better results than others receiving fi nancial education training from their teachers 2019 Western Social Science Association Published by Elsevier Inc All rights reserved 1 Introduction Based on the belief that improved fi nancial literacy will empower people to make better fi nancial decisions interest in this fi eld has increased worldwide in recent years Aprea et al 2016 Moreno Herrero Salas Velasco Lusardi Hung Parker Remund 2010 However it also accounts for the skills motivation and confi dence to apply this knowledge in order to make https doi org 10 1016 j soscij 2019 07 011 0362 3319 2019 Western Social Science Association Published by Elsevier Inc All rights reserved Please cite this article in press as Cordero J M et al Financial education and student fi nancial literacy A cross country analysis using PISA 2012 data The Social Science Journal 2019 https doi org 10 1016 j soscij 2019 07 011 ARTICLE IN PRESS G Model SOCSCI 1643 No of Pages 14 2 J M Cordero et al The Social Science Journal xxx 2019 xxx xxx effective decisions across a range of fi nancial contexts This should improve people s fi nancial well being and enable their participation in economic life Atkinson Gustman Steinmeier Christelis Jappelli Van Rooij Lusardi Lusardi Mandell 2008 Therefore students fi nancial literacy needs to be improved so that they can participate in modern society as well as being benefi cial for the economy as a whole Lusardi Lusardi 2015 For this purpose it is essen tial to engage parents in fi nancial education as socialization agents for their children Jorgensen Shim Barber Card Xiao Messy OECD 2015 2016 This should give the entire school age population equal access to fi nancial education To do so they are adopting different strategies These strategies range from a well developed framework to basic pilot programs However the most common option is a cross curricular approach providing some form of fi nancial education by linking fi nancial concepts with some other learning areas to prevent curriculum overload In most cases schools adopt a fl exible approach to the integration of fi nancial education into the curriculum and teachers may also decide whether or not to include aspects of fi nan cial literacy within their subjects Therefore there are a lot of differences across territories and also among schools within the same territory Atkinson Grifoni McCormick 2009 Miller Reichelstein Salas Xu Lyons Chang Bover Hospido L hrmann Serra Garcia Romagnoli Bruhn Le o Legovini Marchetti Frisancho 2018 Jamison Karlan Fernandes Lynch Willis 2008 while many others have found a positive correlation Please cite this article in press as Cordero J M et al Financial education and student fi nancial literacy A cross country analysis using PISA 2012 data The Social Science Journal 2019 https doi org 10 1016 j soscij 2019 07 011 ARTICLE IN PRESS G Model SOCSCI 1643 No of Pages 14 J M Cordero et al The Social Science Journal xxx 2019 xxx xxx 3 between its implementation and educational outcomes Batty Collins Varcoe Martin Devitto Walstad Rebeck No of Pages 14 4 J M Cordero et al The Social Science Journal xxx 2019 xxx xxx Fig 1 Availability of fi nancial education in schools by countries Source Own computation from PISA 2012 Fig 2 Financial education as a compulsory subject by countries Source Own computation from PISA 2012 Fig 3 Financial education using a cross curricular approach by countries Source Own computation from PISA 2012 Figs 3 and 4 we can identify some countries where the cross curricular approach is clearly the main alternative e g the Slovak Republic the Czech Republic or Estonia and others were the preferred option is to teach fi nan cial education as a separate subject e g the USA or New Zealand However it is also common practice to combine the two strategies e g Shanghai China Colombia or the Russian Federation 3 Data and variables PISA 2012 was the fi rst assessment of the fi nancial knowledge of 15 year old students around the world This Please cite this article in press as Cordero J M et al Financial education and student fi nancial literacy A cross country analysis using PISA 2012 data The Social Science Journal 2019 https doi org 10 1016 j soscij 2019 07 011 ARTICLE IN PRESS G Model SOCSCI 1643 No of Pages 14 J M Cordero et al The Social Science Journal xxx 2019 xxx xxx 5 Fig 4 Financial education taught as a separate subject by countries Source Own computation from PISA 2012 was an optional assessment for countries and economies Eighteen countries and economies participated in the assessment of fi nancial literacy They include 13 OECD countries and economies Australia the Flemish Commu nity of Belgium the Czech Republic Estonia France Israel Italy New Zealand Poland the Slovak Republic Slove nia Spain and the USA and fi ve partner countries and economies Colombia Croatia Latvia the Russian Fed eration and Shanghai China Specifi cally a total 29 041 students completed the assessment of fi nancial literacy in 2012 representing a student population of about nine million 15 year olds in the 18 participating countries and economies The students participating in the fi nancial literacy assessment were recruited and assessed separately from and in addition to the other pupils participating in the core PISA assessment 35 per school In particular eight additional 15 year old students were selected randomly from students enrolled in each participating school to take the fi nancial literacy assessment The test comprised four 30 min clusters of test materials which each student had a total of two hours to complete Each booklet included two clusters of fi nancial literacy items a total of 40 ques tions with fi ve different levels of diffi culty that they had to complete in 60 min These questions cover different contents e g identify different ways to pay for items calculate correct change work out which of two different sized consumer items would be better value for money according to their needs and circumstances understand that money can be borrowed or lent and the reasons for paying or receiving interest identify which providers are trustworthy etc There are a wide array of response for mats open constructed response constructed response and multiple choice and respondents are usually required to perform some simple mathematical calculations to answer questions In general terms questions and answers are quite short and direct thus they only require a basic profi ciency in reading literacy 3Moreover each booklet 3 Figure A1 in Appendix contains some examples of PISA questions included in the test also includes one cluster of mathematics test items and one cluster of reading items very similar to the core assess ment in PISA Therefore data about three different domains fi nancial literacy mathematics and reading is available for this smaller sample of students The fi nancial literacy assessment includes three dif ferent dimensions contents processes and contexts The content categories comprise the areas of knowledge and understanding that are essential for performing a partic ular fi nancial task They include money and transactions planning and management of fi nances risk and reward and fi nancial landscape The process categories refer to cognitive processes and describe students ability to rec ognize and apply key concepts in the domain as well as to understand evaluate and suggest solutions Finally the contexts represent the situations in which fi nancial knowl edge skills and understanding are applied The focus may be on the individual family or peer group the community or the school or even on a global scale Since there is a huge amount of test material to be cov ered it is impossible to ask every pupil each test question Therefore the pool of items is divided into blocks or clus ters of items As the test has to be administered over a maximum of two hours4 students are randomly assigned to complete one particular test booklet each of which includes several blocks Therefore each student responds to only a fraction of what constitutes the total assessment pool As a result the measurement error for individual profi ciency is substantial One way of accounting for the uncertainty associated with the estimates and obtaining unbiased group level estimates is to use multiple values representing the likely distribution of student profi ciency Several random draws from the estimated ability distri bution are selected from the distribution of profi ciency estimates of every student Mislevy Beaton Kaplan Wu 2005 5Each draw is related to as a 4 This limitation on testing time is based on considerations with respect to reducing student burden minimizing interruptions of the school sched ule and other factors 5 Profi ciency estimates are determined by applying a complex item response theory IRT model to the data Rasch 1980 This model takes Please cite this article in press as Cordero J M et al Financial education and student fi nancial literacy A cross country analysis using PISA 2012 data The Social Science Journal 2019 https doi org 10 1016 j soscij 2019 07 011 ARTICLE IN PRESS G Model SOCSCI 1643 No of Pages 14 6 J M Cordero et al The Social Science Journal xxx 2019 xxx xxx plausible value These plausible values can be interpreted as the range of abilities that a student might reasonably have see OECD 2014a for details Specifi cally fi ve plau sible values representing fi nancial literacy are reported for each student We use these fi ve available measures of per formance as our dependent variables 6The PISA scores are presented on a scale with a mean of 500 and a standard deviation of 100 To aid interpretation the OECD states that one year of schooling is approximately equivalent to a difference of 40 PISA test points OECD 2010 p 110 The PISA dataset also includes a wide range of variables on student background learning experiences and attitudes drawn from the student questionnaire Besides it provides data about school resources and policies completed by school principals In our application we have selected sev eral control variables at student level based on previous literature Specifi cally we select the number of books at home and parents educational level 7since several studies found that socioeconomic characteristics are the strongest predictors of fi nancial literacy scores e g Lusardi Erner Goedde Menke Jang Hahn Grohmann OECD 2017a Unfortunately student responses to these questions were incomplete 13thus these variables con tained a substantial proportion of missing values In order to account for this important information we have calcu lated the average variable values at country level using data on students who answered these questions assuming that their responses can be considered representative of the whole country Specifi cally we retrieved three variables These variables represent the percentages of students hold background from students questionnaire the highest educational level of either of the student s parents the highest occupational status of either of the student s parents and an index of educational possessions with respect to household economy 9 The exact question included in the school questionnaire is Which of the statements below best describes the situation for students in regarding the availability of fi nancial educa tion in your school Please tick only one box a Financial education is not available b Financial education has been available for less than two years c Financial education has been available or two years or more 10 We collapsed information about responses b and c into a single option availability of fi nancial education thus we can construct a binary variable taking the value one if fi nancial education was available and 0 if it was not 11 The fi ndings of several empirical studies suggest that fi nancial edu cation is positively related to students fi nancial literacy scores when it is taught using a cross curricular approach e g Cordero Moreno Herrero Salas Velasco No of Pages 14 J M Cordero et al The Social Science Journal xxx 2019 xxx xxx 7 Table 1 Variable description Description Dependent variable PV1FLIT 1stplausible value PV for fi nancial literacy PV2FLIT 2ndplausible value PV for fi nancial literacy PV3FLIT 3rdplausible value PV for fi nancial literacy PV4FLIT 4thplausible value PV for fi nancial literacy PV5FLIT 5thplausible value PV for fi nancial literacy Covariates at student level Female Dummy variable DM that takes value 1 if the student is a girl and 0 otherwise Age Student age Immigrant fi rst generation DM value 1 if the student was born in another country and 0 otherwise Student did not receive pre primary education DM value 1 if the student has not received pre primary education and 0 otherwise Mother is university educated DM value 1 if student s mother has a university degree and 0 otherwise Father is university educated DM value 1 if student s father has a university degree and 0 otherwise Less than 25 books at home DM value 1 if there are less than 25 books at home and 0 otherwise More than 200 books at homeDM value 1 if there are more than 200 books at home and 0 otherwise Covariates at school level Private school DM value 1 if the school is private and 0 if it is public School in rural area DM value 1 if the school is located in a village or small town and 0 otherwise ESCS mean Average value of the ESCS index at school level Specifi c variables related to fi nancial education FE is available DM value 1 when FE is available at the school and 0 otherwise FE is compulsory DM value 1 when FE is compulsory at the school and 0 otherwise FE taught separately DM value 1 if FE is taught as a separate subject and 0 otherwise FE taught using a cross curricular approach DM value 1 if FE is taught adopting a cross curricular approach and 0 otherwise FE taught by people from private institutions DM value 1 if FE is provided by people from private sector institutions e g banks insurance companies FE taught by people from public institutionsDM value 1 if FE is provided by people from public institutions e g Ministry of Finance reserve bank FE taught by people from NGOs DM value 1 if FE is provided by people from non government organizations NGOs Covariates at country level Account Percentage of students holding a bank account Gifts Percentage of students receiving money as gifts from friends or relatives Allowance Percentage of students receiving money from an allowance without having to do chores GDPpc Gross domestic product per capita Banks Number of commercial branches in the country Stocks Total value of stocks traded GDP ing a bank account having money coming from gifts from friends or relatives and receiving money from an allowance without having to do chores 14Moreover we also col lected additional information at country level about several variables including the gross domestic product per capita which has also been examined in previous literature as a potential determinant of fi nancial literacy e g Chambers Jappelli 2010 Jappelli Schafer 1999 This method uses all the variables available in the model to estimate unob served data according to the particular characteristics of each variable 15In addition to this procedure we applied an additional imputation approach to complete information about our core variable the availability of fi nancial educa tion courses based on the responses that school principals gave to other related questions We enacted this procedure after detecting several cases where principals indicated that fi nancial courses were not available but then went on to answer other related questions indicating how fi nan 15 Multiple imputation has been demonstrated to be a better statistical option than other more simplistic techniques dealing with missing val ues such as listwise deletion or replacement by the mean values Manly Van Ginkel Van der Ark No of Pages 14 8 J M Cordero et al The Social Science Journal xx