Arbeitspapier

Financial Literacy and Self-employment

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.

Language
Englisch

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

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

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

Handle
URN
urn:nbn:de:gbv:3:2-53382
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Ćumurović, Aida
  • Hyll, Walter
  • Leibniz-Institut für Wirtschaftsforschung Halle (IWH)

Time of origin

  • 2016

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