Indicates the number of years nancial literacy

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indicates the number of years ±nancial literacy mandates had been in place when the individual graduated from high school, Married i and College i are indicator variables for marital status and college education, and earnings is total earnings / 100,000. Column (1) gives the results for savings rate percentile, compared to peers, which BGM use to reduce the in²uence of outliers. Consistent with the patterns reported above and elsewhere, BGM ±nd savings increases in education and earnings. They suggest that the strong relationship between age and income explains why the savings rate is not correlated with age. The main regressor of interest, ² 1 , is positive and signi±cant, suggesting that exposure to ±nancial literacy education leads to an increased savings rate. Graduating ±ve years following the mandate would induce an individual to move approximately 4.5 percentage points up in the distribution of savings rate, equivalent to a 1.5 percentage points shift in savings rate. BGM also note that the fact that ² 0 is statistically indistinguishable from zero supports the identi±cation strategy: treated states were not di/erent from non-treated states prior to the imposition of the 15
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mandate. In columns (2) - (5) we replicate BGM°s results, estimating equation (4) using data from the census. There are two important di/erences between the census data and the BGM sample. First, the BGM sample was collected in 1995, ±ve years prior to the 2000 census. Our sample is aged 35-54 in 2000. When using the census data, we focus on households born in the same years as the BGM sample, so the birth-cohorts are ±ve years older. 12 Second, the census sample size is substantially larger, at 3.6 million, compared to BGM°s 1,900 respondents. We cluster standard errors at the state of birth-year of birth level. The primary dependent variable used by BGM was the savings rate, de±ned as unspent take-home pay plus voluntary deferrals, divided by income. This information is not available in the census. Instead, we focus on reported income from savings and investments, dividends and rental payments, which should be informative of the level of assets held by the household. Columns (2) and (3) in Table 4 present the estimation of equation (4) using ³any investment income´, a dummy equal to 1 if the household reports any income from investment or savings, as the dependent variable. Column (2) estimates a linear regression model, while column (3) estimates probit. Similar to BGM, we ±nd a positive relationship between savings behavior and age, income, college education, and total income. The main coe¢ cient of interest, on years since mandate, is positive and statistically signi±- cant, at the one percent level. The point estimate, in column (2) 0.33, suggests that each year the mandate had been in e/ect the share of households reporting savings income increased by 0.33 percentage points. The mean level of participation is 22.13 percentage points, while the standard deviation is 41 percentage points. The e/ect is therefore modest: the e/ect, ±ve years following the imposition of mandates, would be 1.5 percentage points, or approximately 0.05
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