The role of financial literacy on earnings and old aged saving among self-employed workers

dc.contributor.advisorAmornrat Apinunmahakulth
dc.contributor.authorPraewpailin Janposrith
dc.descriptionThesis (Ph.D. (Economics))--National Institute of Development Administration, 2020th
dc.description.abstractRegrading a rapid ageing population in Thailand, its effect will impact to labor participation by creating labor shortage and harming economic growth respectively. As a trend of being self-employed tends to increase significantly in near future (Arayavechkit, 2015), it raises a concerning of saving for retirement due to lacking of social security and pension funds. Therefore, it becomes a self-employed responsibility to decide their planning and save for retirement by themselves in order to meet retirement well-being. Since financial literacy has been found widely to improve financial decisions and wealth accumulation. This study conducted two analysis. First, it aims to explore the effect of financial literacy on retirement planning and wealth accumulation among Thai self-employed workers. Second, to investigate the role of financial literacy and entrepreneurial skills on earnings. The data used both primary data and secondary data. Conducting primary data is necessary because entrepreneurial skills is not provided. This study adopts financial literacy criteria from two sources. First, the OECD data set is provided by the National Statistics Office (NSO) namely the BOT/FA-Q12013. Second, the ANZ-2014 criteria which collect from a filed survey. The three main components of financial literacy consist of financial knowledge, financial behavior and financial attitude. Probit regression by and multiple linear regression are employed to analyze in order to meet the objectives of this study. Using a secondary data, the results from financial literacy analysis shows that financial knowledge become an important factor to enhance probability of retirement saving plan, wealth accumulation and earnings among self-employed workers. While financial behavior components play the role differently. First, keep watching financial affairs give benefit to both saving and planning for retirement and earnings. Moreover, long-term financial goal setting also play significant role on both retirements saving plan and wealth accumulation. In addition, behavior of responding and having household budget, and never borrowing to make ends meet reported a positive effect to lift up net worth and earnings for self-employed workers. However, financial attitude only plays significant effect on retirement saving plan. Using a primary data, the findings show that a retirement saving plan is a problem among self-employed workers as most of them do not have a retirement saving plan yet. While, those who have saving still have too little. Moreover, financial knowledge score reports as a weakness of non-retirement planners since the score is lowest in compared to retirement planners. Considering financial behavior components individually. Retirement planners have a slightly better financial behavior in each component than non-retirement planners except keeping track of finances. In terms of financial attitude, the scores of each component of financial attitude show score differently across retirement planer types. Self-efficacy and financial aspirations are almost the same among retirement planners and non-retirement planners whereas financial stress and impulsivity, both groups reported indifferently. Moving on to the earnings analysis, financial knowledge score increases along with income levels. Therefore, high income group tends to have a good financial behavior more than other sub groups. In addition, across different income levels also show different score on financial attitude. Besides, each entrepreneurial skill score observed increases along with income levels meaning that they are important factors for lifting up earnings among self-employed workers. Finally, this study suggests to policy maker to pay attention on deciding a variety of financial education program and financial seminar in order to comply with the needs of people with different characteristics and life conditions. This will help to intrigue and aware of saving and planning for retirement and being financially healthy habits.  In addition, through a field survey, the findings explored that entrepreneurial skills are also important factor for self-employed workers, to promote learning center which provide essential skills to self-employed workers will help them to operate their business
dc.format.extent228 leavesth
dc.publisherNational Institute of Development Administrationth
dc.rightsThis work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
dc.subjectFinancial literacy Earnings Old aged saving Self-employed workersth
dc.subjectWealth accumulationth
dc.subject.otherFinancial literacyth
dc.subject.otherRetirement -- Planningth
dc.titleThe role of financial literacy on earnings and old aged saving among self-employed workersth
dc.typetext--thesis--doctoral thesis
mods.physicalLocationNational Institute of Development Administration. Library and Information Centerth of Development Economicsth Institute of Development Administrationth of Philosophyth
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