Financial Literacy in Italy: An Empirical Analysis

Financial Literacy in Italy: An Empirical Analysis

This thesis examines the role of financial literacy in shaping individual economic and financial outcomes, with a focus on its association with income, financial market participation, portfolio diversification, and financial well-being in Italy. The empirical analysis is based on microdata from the IACOFI 2023 survey conducted by the Bank of Italy. Following the OECD/INFE methodological framework (2022), a comprehensive measure is constructed by combining financial knowledge, attitudes, and behaviours. The analysis evaluates the relationship between financial literacy and economic outcomes while accounting for key sociodemographic characteristics. The results show that financial literacy presents a positive association with income, financial inclusion, financial market participation, portfolio diversification, and financial well-being. This thesis also highlights significant sociodemographic patterns: individuals with lower levels of education, younger respondents, and women exhibit lower scores in this domain. Results show that financial literacy is associated with financial inclusion, stronger economic and financial resilience, and smaller disparities across groups defined by gender, age, geographic areas, and education. Enhancing financial literacy becomes a tool for promoting equal opportunities, reducing inequalities, and supporting economic development at both national and international levels.