Explaining Financial Literacy in Japan: New Evidence Using Financial Knowledge, Behavior, and Attitude

27 Pages Posted: 13 Nov 2017  

Yoshihiko Kadoya

Hiroshima University

Mostafa Khan

Graduate School of Economics, Nagoya University

Date Written: November 8, 2017

Abstract

This study examines the demographic and socioeconomic factors explaining financial literacy in Japan by decomposing financial literacy into financial knowledge, attitude, and behavior, which provides a deeper understanding of the relationships. We used a large dataset from a national survey conducted by the Bank of Japan in 2016. The GSEM in logit and the OLS regression coefficients show that age, education, balance of financial assets, and use of financial information are positively related to overall financial literacy and its three components, while employment status and experience of financial trouble are negatively associated. Moreover, we show that males perform better than females do in the overall measure of financial literacy and financial knowledge, though females outperform males with regard to financial behavior and financial attitude.

Keywords: financial literacy, financial knowledge, financial behavior, financial attitude, demographic and socio-economic characteristics

JEL Classification: D14, D19, D10

Suggested Citation

Kadoya, Yoshihiko and Khan, Mostafa, Explaining Financial Literacy in Japan: New Evidence Using Financial Knowledge, Behavior, and Attitude (November 8, 2017). Available at SSRN: https://ssrn.com/abstract=3067799 or http://dx.doi.org/10.2139/ssrn.3067799

Yoshihiko Kadoya (Contact Author)

Hiroshima University ( email )

1-2-1 Kagamiyama
Higashi-Hiroshima, 7390047
Japan

HOME PAGE: http://home.hiroshima-u.ac.jp/ykadoya/

Mostafa Khan

Graduate School of Economics, Nagoya University ( email )

1 Furo-cho
Chikusa-ku
Nagoya, 464-8601
Japan

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