The paper analyses the determinants of financial literacy using both individual data on 145,000 adults over the age of 50, residing in 20 European countries and Israel, and aggregate data on country-level conditions that can stimulate knowledge acquisition. In particular, we study the role played by intergenerational mobility in education.
Financial literacy is higher among those who grew up in countries with high intergenerational mobility in education. Intergenerational mobility promotes higher financial literacy especially among women and individuals from socioeconomically and culturally disadvantaged backgrounds.
