000			03868cam a22004457 4500
001			w16500
003			NBER
005			20211020111038.0
006			m o d
007			cr cnu||||||||
008			210910s2010 mau fo 000 0 eng d
100	1		_aGustman, Alan L. _912067
245	1	0	_aFinancial Knowledge and Financial Literacy at the Household Level / _cAlan L. Gustman, Thomas L. Steinmeier, Nahid Tabatabai.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2010.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w16500
500			_aOctober 2010.
520	3		_aThis paper uses data from the Health and Retirement Study to explore the mechanism that underlies the robust relation found in the literature between cognitive ability, and in particular numeracy, and wealth, income constant. We have a number of findings. First, the more valuable the pension, the more knowledgeable are covered workers about their pensions. We suggest that causality is more likely to run from pension wealth to pension knowledge, rather than the other way around. Second, most measures of cognitive ability, including numeracy, are not significant determinants of pension and Social Security knowledge. Third, standardizing for incomes and other factors, a pension of higher value does not substitute for other forms of wealth. Rather, counting pensions in total wealth, those with more valuable pensions save more for retirement, other things the same. Fourth, there is no evidence that wealth held outside of pensions is influenced by knowledge of pensions.
520	3		_aIn sum, numeracy does not influence wealth in whole or in part by affecting financial knowledge of one's pension plan, where financial knowledge of the pension then influences other decisions about retirement saving.
520	3		_aThese findings raise questions about the mechanism that underlies the relation between cognition, especially numeracy, and wealth. From a policy perspective, they suggest that the numeracy-wealth relation should not be taken as evidence that increasing financial literacy will increase the wealth of households as they enter into retirement.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aD31 - Personal Income, Wealth, and Their Distributions _2Journal of Economic Literature class.
690		7	_aD83 - Search • Learning • Information and Knowledge • Communication • Belief • Unawareness _2Journal of Economic Literature class.
690		7	_aE21 - Consumption • Saving • Wealth _2Journal of Economic Literature class.
690		7	_aH23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies _2Journal of Economic Literature class.
690		7	_aH55 - Social Security and Public Pensions _2Journal of Economic Literature class.
690		7	_aJ14 - Economics of the Elderly • Economics of the Handicapped • Non-Labor Market Discrimination _2Journal of Economic Literature class.
690		7	_aJ26 - Retirement • Retirement Policies _2Journal of Economic Literature class.
690		7	_aJ32 - Nonwage Labor Costs and Benefits • Retirement Plans • Private Pensions _2Journal of Economic Literature class.
700	1		_aSteinmeier, Thomas L.
700	1		_aTabatabai, Nahid.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w16500.
856	4	0	_uhttps://www.nber.org/papers/w16500
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w16500
942			_2ddc _cW-PAPER
999			_c331623 _d290185