Can Financial Education Reduce Domestic Violence?

Abstract

Yes. Using data on more than 3.7 million intimate partner violence incidents between 1994 and 2016, and exploiting the introduction of state-mandated personal finance high school graduation requirements in U.S. states for identification, we show that financial education can significantly reduce the rates of violence against women perpetrated by their male partners. We conservatively estimate a reduction in violence by between 3% and 11%. Our evidence points to financial education raising awareness and confidence which increases women's outside options and deters financial abuse thereby empowering women to leave abusive relationships earlier or preventing the first incident from ever occurring.

Keywords: financial education, financial literacy, financial confidence, financial abuse, domestic violence

JEL Classification: A20, G53, H75, J16