The Effects of Schooling on Wealth Accumulation Approaching Retirement

Arbeitspapier

Education and wealth are positively correlated for individuals approaching retirement, but the direction of the causal relationship is ambiguous in theory and has not been identified in practice. We combine administrative data on individual total wealth with a reform expanding access to lower secondary school in Denmark in the 1950s, finding that schooling increases pension annuity claims but reduces the non-pension wealth of men in their 50's. These effects grow stronger as normal retirement age approaches. Labour market mechanisms are key, with schooling increasing job mobility, reducing housing equity, increasing leverage, and improving occupational pension benefits.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2017:9

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Portfolio Choice; Investment Decisions ; Education and Inequality ; Returns to Education
• Subject: Education ; Wealth ; Labour market mechanisms ; Pensions ; Housing equity ; Portfolio composition ; Instrumental variable

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bingley, Paul ; Martinello, Alessandro
• Event: Veröffentlichung
• (who): Lund University, School of Economics and Management, Department of Economics
• (where): Lund
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/260218
• Last update: 10.03.2025, 11:41 AM CET