Financial Literacy and Self-employment

Arbeitspapier

In this paper, we study the relationship between financial literacy and self-employment. We use established financial knowledge-based questions to measure financial literacy levels. The analysis shows a highly significant correlation between self-employment and financial literacy scores. To investigate the impact of financial literacy on being self-employed, we apply instrumental variable techniques based on information on economic education before entering the labour market and education of parents. Our results reveal that financial literacy positively affects the probability of being self-employed. As financial literacy is acquirable, findings suggest that entrepreneurial activities may be raised via enhancing financial knowledge.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IWH Discussion Papers ; No. 11/2016

Classification and Topics

• Classification: Wirtschaft ; Economic Education and Teaching of Economics: General ; Labor Demand ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: financial literacy ; financial sophistication ; self-employment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ćumurović, Aida ; Hyll, Walter
• Event: Veröffentlichung
• (who): Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
• (where): Halle (Saale)
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/130226
• URN: urn:nbn:de:gbv:3:2-53382
• Last update: 10.03.2025, 11:42 AM CET