Approximately a quarter of families in Curaçao had an income below the poverty line in 2011 (CBS, Census 2011). Poverty is especially relevant for retirees, the unemployed, female parented single families, and the lowly educated. Evidence from other countries suggests that such households make unsound financial decisions. For instance they more often take out high interest loans and they don’t financially prepare for retirement. This is problematic because public pension (AOW) and social insurance schemes have become less generous in Curaçao.
Rob Alessie, Professor Micro-econometrics at the Faculty of Economics and Business, was awarded a NWO research grant of 600.000 Euros for the project ‘Improvement of the health - and financial literacy of the population of Curaçao’. The aim of the Groningen part of this project is to gain insight into how to improve financial literacy and to study the effects of financial literacy on financial decisions of residents of Curaçao.
‘Governments are basically encouraging increased reliance on the individual. But how well-equipped are individuals to make complex financial decisions in the face of often high-cost and complex financial instruments?’, says Alessie. ‘What is their level of financial literacy and who knows the most and the least? What are the consequences and costs of financial illiteracy? And what are the most effective programs to promote financial literacy and informed financial decision-making?’
Contact: Rob Alessie
> More news from the Faculty of Economics and Business
> FEB experts in the media
Willem de Boer, former PhD candidate at the Faculty of Economics and Business (FEB), has won the Boymans Prize for the best dissertation in the field of sports, physical education and recreation. De Boer, currently researcher and lecturer at HAN...
Lars Beute and Pam Gottschal are the winners of the Maarten van der Vlerk Thesis Prize 2022, the prize for excellent bachelor's or master's thesis in the field of Econometrics and Operations Research (and Actuarial Studies). Beute won the prize for...
During the annual conference of the International Corporate Governance Society (ICGS), Niels Hermes was elected as President of the society. ICGS is an academic forum for corporate governance scholars that enhances research, teaching, and...
The UG website uses functional and anonymous analytics cookies. Please answer the question of whether or not you want to accept other cookies (such as tracking cookies).
If no choice is made, only basic cookies will be stored. More information