Does education improve financial outcomes? : evidence from stock market and retirement accounts in Türkiye

We examine the causal effect of education on financial outcomes related to stock markets and retirement savings, leveraging a major compulsory school reform and a unique data set covering the universe of investors in Türkiye. The estimates show no effects on participation rates, portfolio composition, or return performance. Moreover, education does not appear to influence behavioral biases or heuristics in retirement plans. The reform leads to a 3% increase in pension savings for females, with no significant effect on males. Higher earnings and increased employment with employer-sponsored pension plans appear as potential mechanisms driving the wealth effect.