NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Vilsa Curto

Contact and additional information for this authorAll publicationsWorking Papers only

Working Papers and Chapters

February 2012Financial Sophistication in the Older Population
with Annamaria Lusardi, Olivia S. Mitchell: w17863
This paper examines data on financial sophistication among the U.S. older population, using a special-purpose module implemented in the Health and Retirement Study. We show that financial sophistication is deficient for older respondents (aged 55+). Specifically, many in this group lack a basic grasp of asset pricing, risk diversification, portfolio choice, and investment fees. Subpopulations with particular deficits include women, the least educated, persons over the age of 75, and non-Whites. In view of the fact that people are increasingly being asked to take on responsibility for their own retirement security, such lack of knowledge can have serious implications.
January 2011Estimating the Returns to Urban Boarding Schools: Evidence from SEED
with Roland G. Fryer, Jr.: w16746
The SEED schools, which combine a "No Excuses'' charter model with a five-day-a-week boarding program, are America's only urban public boarding schools for the poor. We provide the first causal estimate of the impact of attending SEED schools on academic achievement, with the goal of understanding whether changing a student's environment through boarding is a cost-effective strategy to increase achievement among the poor. Using admission lotteries, we show that attending a SEED school increases achievement by 0.198 standard deviations in reading and 0.230 standard deviations in math, per year of attendance. Despite these relatively large impacts, the return on investment in SEED is less than five percent due to the substantial costs of boarding. Similar "No Excuses'' charter schools -- wit...
November 2009Financial Literacy and Financial Sophistication Among Older Americans
with Annamaria Lusardi, Olivia S. Mitchell: w15469
This paper analyzes new data on financial literacy and financial sophistication from the 2008 Health and Retirement Study. We show that financial literacy is lacking among older individuals and for the first time explore additional questions on financial sophistication which proves even scarcer. For this sample of older respondents over the age of 55, we find that people lack even a rudimentary understanding of stock and bond prices, risk diversification, portfolio choice, and investment fees. In view of the fact that individuals are increasingly required to take on responsibility for their own retirement security, this lack of knowledge has serious implications.
September 2009Financial Literacy among the Young: Evidence and Implications for Consumer Policy
with Annamaria Lusardi, Olivia S. Mitchell: w15352
We examined financial literacy among the young using data from the 1997 National Longitudinal Survey of Youth. We showed that financial literacy is low among the young; fewer than one-third of young adults possess basic knowledge of interest rates, inflation, and risk diversification. Financial literacy is strongly related to sociodemographic characteristics and family financial sophistication. Specifically, a college-educated male whose parents had stocks and retirement savings is about 50 percentage points more likely to know about risk diversification than a female with less than a high school education whose parents were not wealthy. These findings have implications for consumer policy.

Contact and additional information for this authorAll publicationsWorking Papers only

 
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