The Effects of Schooling on Wealth Accumulation Approaching Retirement
(2017) In Working Papers 2017(9).- Abstract
- 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.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/a3496cb7-cdde-4fea-9748-677eaca02517
- author
- Bingley, Paul and Martinello, Alessandro LU
- organization
- publishing date
- 2017-06-12
- type
- Working paper/Preprint
- publication status
- published
- subject
- keywords
- education, wealth, labour market mechanisms, pensions, housing equity, portfolio composition, instrumental variable, D31, G11, I24, I26
- in
- Working Papers
- volume
- 2017
- issue
- 9
- pages
- 33 pages
- publisher
- Department of Economics, Lund University
- language
- English
- LU publication?
- yes
- id
- a3496cb7-cdde-4fea-9748-677eaca02517
- date added to LUP
- 2017-07-14 15:30:27
- date last changed
- 2018-11-21 21:33:25
@misc{a3496cb7-cdde-4fea-9748-677eaca02517, abstract = {{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.}}, author = {{Bingley, Paul and Martinello, Alessandro}}, keywords = {{education; wealth; labour market mechanisms; pensions; housing equity; portfolio composition; instrumental variable; D31; G11; I24; I26}}, language = {{eng}}, month = {{06}}, note = {{Working Paper}}, number = {{9}}, publisher = {{Department of Economics, Lund University}}, series = {{Working Papers}}, title = {{The Effects of Schooling on Wealth Accumulation Approaching Retirement}}, url = {{https://lup.lub.lu.se/search/files/28268125/wp17_9.pdf}}, volume = {{2017}}, year = {{2017}}, }