Evaluating the Psychometric Properties of Economic Literacy Measures: A Systematic Review
DOI:
https://doi.org/10.37134/ajatel.vol14.1.8.2024Keywords:
Economic Literacy, Financial literacy, Psychometric, Test of Economic Literacy, Systematic ReviewAbstract
Prior studies often misinterpreted economic literacy concepts, constructs, and psychometric properties as related but distinct ideas. This often led to inaccurate measurement choices and poor generalisation of research outcomes. This research investigates economic literacy's conceptual clarity, factors influencing it, psychometric properties of measures, and suggests suitable instruments for its assessment. The PRISMA protocol was used in the study, while data were collected from WOS, Scopus, and Google Scholar. Out of the 126 publications from 2014 to 2023, 24 studies met inclusion criteria. The quality of the articles that met the inclusion criteria was assessed using MMAT tools. The result indicated that the measurement of economic literacy's depends on theoretical perspectives. Psychometric qualities of economic literacy assessment are influenced by theoretical perspectives, social context, and the chosen unit of analysis. Additionally, criterion-based measurements tend to focus on knowledge and may not provide an accurate measure of economic literacy. The provide guidelines to operationalize, and measure economic literacy while preventing confusion with related concepts. The study stressed the need for validation of the TEL scale across countries due to curriculum and socioeconomic variations.
Downloads
References
Aarab, N. (2017). When Economics Become One of Our Education Priorities. Retrieved October, 2021, from http://soo.gd/7YD7
Ackermann, N. (2019). Wirtschaftsbürgerliche Kompetenz Deutschschweizer Gymnasiastinnen und Gymnasiasten: Kompetenzmodellierung, Testentwicklung und evidenzbasierte Validierung [The economic civic competence of Swiss-German secondary school pupils]. [Doctoral dissertation]. Zurich University of Teacher Education. https://doi.org/10.5167/uzh-175377
Al-Rabaani, A. (2019). Economic literacy among social studies teachers in Oman. Journal of Education and Practice, 10(4), 41-46. https://doi.org/10.7176/JEP/10-4-05
Bamiro, N.B., Zakariya, Z., Raimi, L. and Thomas, Y. (2024), "Unlocking the nexus: exploring the mediating and moderating dynamics of risk factors in economic literacy for organizational performance - A systematic review", Journal of Economic and Administrative Sciences, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEAS-12-2023-0343
Bamiro, N. B., Zakariya, Z. B., & Nasiru, B. A. (2023). Development of halal entrepreneurship framework through business incubator service for sustainability using PRISMA. Contemporary Discourse of Halal and Islamic Entrepreneurship, 79-97.. https://doi.org/10.1007/978-981-99-6427-7_6
Beck, K.,& Krumm, V. (1998). Wirtschaftskundlicher Bildungstest (WBT). Handanweisung [Economic literacy test]. Hogrefe Verlag für Psychologie.
Bosshardt, William, and William B. Walstad. (2014). National Standards for Financial Literacy: Rationale and Content. The Journal of Economic Education 45: 63–70.
Budiwati, N., Ahman, E. & Suparno. (2020). Economic Literacy and Financial Studies in Higher Education: A Theoretical Approach to the Learning Model and Its Impact. International Journal of Innovation, Creativity and Change, 13(6), 924-939.
Budiwati, N., Geminastiti, K., Nuriansyah, F. & Nurhayati, D. (2020). Economic Literacy and Economic Decisions. Jurnal Pendidikan Ilmu Sosial,29(1), 85-96.
Cakmak, A.F., Benk, S., Budak, T. and Yucedogru, R. (2015). A Study on Economic Literacy Levels of Primary Prospective Teachers. The International Journal of Early Childhood Learning, (22)2, 1-15.
Chizmar, J.F. & Halinski, R.S. (1983) Performance in the Basic Economics Test (BET) and “Trade-offs”, The Journal of Economic Education, 14:1, 18-29, DOI: 10.1080/00220485.1983.10845002
Council for Economic Education (CEE). (2010). Voluntary National Content Standards in Economics, 2nd ed. Available online: https: //www.councilforeconed.org/wp-content/uploads/2012/03/voluntary-national-content-standards-2010.pdf (accessed on 28 July, 2022).
Cwynar, A. (2022). Financial literacy and financial education in Eastern Europe. In The Routledge Handbook of Financial Literacy. Edited by Gianni Nicolini and Brenda J. Cude. London: Routledge, pp. 400–19.
Cude, B. J. (2022). Defining Financial Literacy. In The Routledge Handbook of Financial Literacy. Edited by Gianni Nicolini and Brenda J. Cude. London: Routledge, pp. 5–17.
Dİlek, S. Kesgİngöz, H, Konak, A. & Halicioğlu, S. (2018). Factors Affecting Economic Literacy. Afro Eurasian Studies, 7 (1), 11-51.
Dubs, R. (2011). Die Bedeutung der wirtschaftlichen Bildung in einer Demokratie [The importance of economic education in a democracy]. InL. Ludwig, H. Luckas, F. Hamburger, & S. Aufenanger (Eds.),Bildung in der Demokratie II: Tendenzen-Diskurse-Praktiken(pp. 191–206).Verlag Barbara Budrich
Frank, R.H. & Bernanke, B.S. (2007). Principles of Economics (3rd ed). McGraw-Hill, Boston, Massachusetts.
Fourie, A. and Krugell, W. (2015). Determining the economic literacy of introductory economic students in South Africa. International Journal of Education Economics and Development, (6)1, 86-96.
Folke, T., Gjorgjiovska, J., Paul, A., Jakob, L., & Ruggeri, K. (2021). Asset: A new measure of economic and financial literacy. European Journal of Psychological Assessment, 37(1), 65–80. https://doi.org/10.1027/1015-5759/a000575
Gerek, S. & Kurt, A.A, (2011). Ekonomi Okuryazarlığı Ölçeğinin Geçerlik ve Güvenirlik Çalışması. Uludağ Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 30(1), 59- 73.
Grol, R., Sent, E. & Vries, B. (2017). Participate or observe? Effects of economic classroom experiments on students’ economic literacy. Springer European Journal of Psychology of Education, 32, 289–310
Günther, S. & Retzmann, T. (2017). Financial Literacy—Finanzielle (Grund) Bildung—Ökonomische Bildung [Financial Literacy—Financial (Basic) Education—Economic Education]. Vierteljahrshefte zur Wirtschaftsforschung 86: 69–80.
Happ, R., Zlatkin-Troitschanskaia, O., & Förster, M. (2018). How prior economic education influences beginning university students’ knowledge of economics. Empirical Research in Vocational Education and Training, 10(5). 1–20.
Haupt, M. (2022). Measuring financial literacy: The role of knowledge, skills and attitudes. In The Routledge Handbook of Financial Literacy. Edited by Gianni Nicolini and Brenda J. Cude. London: Routledge, pp. 79–95.
Happ, R., Schmidt, S., Olga Zlatkin-Troitschanskaia, O. & Walstad, W., (2023). How Gender and Primary Language Inflfluence the Acquisition of Economic Knowledge of Secondary School Students in the United States and Germany. Journal of Risk and Financial Management 16: 160.
Happ, R. (2020). Der Einfluss des Migrationshintergrundes auf unterschiedliche Facetten des ökonomischen Wissens—Implikationen für die Wirtschaftsdidaktik (Habilitationsschrift) [The Influence of Migration Background on Different Facets of Economic Knowledge— Implications for the Didactics of Economics (habilitation thesis)]. Mainz: Johannes Gutenberg-University Mainz.
Hansen, W.L., Salemi, M.K. & Siegfried, J.J. (2002), ‘Use It or Lose It: Teaching Literacy in the Economics Principles Course’. American Economic Review, 92(2), pp 463–472.
Happ, R., Zlatkin-Troitschanskaia, O., & Förster, M. (2018). How prior economic education influences beginning university students’ knowledge of economics. Empirical Research in Vocational Education and Training, 10(5). 1–20.
Happ, R., Kato, M. & Ruter, I. (2021). Results from the test of economic literacy in Germany and Japan: A critical discussion on the gender effect. SAGE Journal of Citizenship, Social and Economics Education, 20(1) 48–68.
Haupt,M. (2022). Measuring financial literacy. The role of knowledge, skills, and attitudes. InG. Nicolini& J. B. Cude(Eds.), The Routledge handbook of financial literacy(pp. 79–95). Routledge Taylor & Francis Group.
Hashim, C.N. & Bakare, K.K. (2013).Economics Literacy among University Students: A Case Study of International Islamic University Malaysia (IIUM). World Applied Sciences Journal 28 (6): 871-875.
Hasan, M., Arisah, N., Nurdiana., Tuti S., & Nikensari, S.I. (2022). Socioeconomic Status, Individual Modernity, Economic Literacy, and Consumer Rationality of Millennial Generation. Jurnal Economia, 18(1), 51-69.
Hong, Q.N., Pluye P., Fàbregues, S, Bartlett G, Boardman, F., Cargo, M., Dagenais P., Gagnon M-P., Griffiths, F., Nicolau, B., O’Cathain, A., Rousseau, M-C. & Vedel, I. (2018). Mixed Methods Appraisal Tool (MMAT), version. Registration of Copyright (#1148552), Canadian Intellectual Property Office, Industry Canada.
Ismail, R., Hussin, M.Y.M. & Muhammad, F. (2019). Economic Literacy: Does It Matter for Policy Understanding? Research in World Economy, (10)5, 104-112.
Kumar, S. (2018). Understanding Different Issues of Unit of Analysis in a Business Research. Journal of General Management Research, (5) 2, 70–78.
Koh, N. K. (2016). Approaches to teaching financial literacy: Evidence-Based Practices in Singapore Schools. In International Handbook of Financial Literacy. Edited by Carmela Aprea, Eveline Wuttke, Klaus Breuer, Noi Keng Koh, Peter Davies, Bettina Greimel-Fuhrmann and Jane S. Lopus. Berlin/Heidelberg: Springer, pp. 499–514.
Kimanzi, M.K. (2021). The Influence of Economic Literacy Levels on Economic Policies Affecting South Africa. International Journal of Innovation, Creativity and Change, (15)11, 143-158.
Lin, C. & Bates, T.C. (2022). Smart people know how the economy works: Cognitive ability, economic knowledge and financial literacy. ELSEVIER Journal of Intelligence, (93) 101667, 1-8.
Livermore, L. & Major, M. (2021), ‘What Is Driving Participation and Diversity Trends in Economics? A Survey of High School Students’, RBA Research Discussion Paper No 2021-06.
Miller, K., Alexander, A., Cunningham, J.A. and Albats, E. (2018), “Entrepreneurial academics and academic entrepreneurs: a systematic literature review”, International Journal of Technology Management, (77)/2/3, 9-36.
McCowage, M. & Dwyer, J. (2022). Economic Literacy: What Is It and Why Is It Important? Reserve Bank of Australia Bulletin, 1-1.
Mohamad, A. (2020). Financial literacy among youth alarmingly low. New Straits Times. https://www.nst.com.my/opinion/ letters/2020/10/631937/financial-literacyamong-youth-alarmingly-low.
Neves, S. & Brito, C. (2020). Academic entrepreneurship intentions: a systematic literature review. Emerald Journal of Management Development, (39)5, 645-704.
Nizam, M.N.F., Sieng, L.W. & Sulaiman, N. (2020). Economic Literacy among Students in Malaysia. Malaysian Journal of Society and Space (16)3, 45-57.
North Central Regional Educational Laboratory and the METIRI Group-NCREL (2003). 21st century skills: literacy in the digital age [Online], Available: http://pict.sdsu.edu/engauge21 st.pdf
Page, M.J. (2021). The PRISMA 2020 statement: an updated guideline for reporting systematic reviews. (372)71, 1-9. http://dx.doi.org/10.1136/bmj.n71
Pang, M. F. (2010). Boosting financial literacy: Benefits from learning study. Instructional Science 38: 659–77.
Peterson, A. (2020). Literacy is More than Just Reading and Writing. National Council of English Teachers (NCET), accessed from https://ncte.org/blog/2020/03/literacy-just-reading-writing/ on 29/07/2023
Pristiani, R., Witjaksono, M. & Nirbito, J.G. (2021).Study of Economic Literacy Level Among Primary School Students.Ilkogretim Online - Elementary Education Online,20(1),1408-1413.
Puspitarini, D., Sudana Degeng, I.N., Praherdhiono, H. & Nunung Suryati, N. (2023). Humanistic Pesantren: Systematic Literature Review and Bibliometric Visualization Analysis on Character, Moral, and Ethical Values. Pertanika J. Soc. Sci. & Hum. 31 (2): 465 – 490.
Pluye, P., Robert, E., Cargo, M., Bartlett, G., O’Cathain, A., Griffiths, F., Boardman, F., Gagnon, M.P., & Rousseau, M.C. (2011). Proposal: A mixed methods appraisal tool for systematic mixed studies reviews. Retrieved on [date] from http://mixedmethodsappraisaltoolpublic.pbworks.com. Archived by WebCite® at http://www.webcitation.org/5tTRTc9yJ
Paul, J., & Criado, A.R. (2020). The art of writing literature review: What do we know and what do we need to know? International Business Review, 29(4), 101717. https://doi.org/10.1016/j.ibusrev. 2020.101717
Qayyum, W., & Muhammad, M. (2021). Economic Literacy in a Multidimensional Individualistic Perspective: Evidence from Pakistan’s Economy. Journal of Social Sciences & Humanities (1994-7046), 29(1), 1–18.
Rogers. J. (2014), ‘The Need for Economic Literacy for Students and Teachers: Insights from John Dewey’, Analyses of Social Sciences and Public Policy, 14(1), pp 419–422.
Ribeiro, M.I.B., Fernandes, A.J.G. & Fernandes, A.P.R. (2019). Economic Literacy: A Longitudinal Study in Portuguese Undergraduate Students. Proceedings of ICERI2019 Conference 11th-13th November 2019, Seville, Spain, 5360-5367.
Reinhardt, F., Happ, R. & Nell-Müller, S.(2021). A Multilevel Analysis of Economic Literacy Among International Students: Implications for an International Assessment of Heterogeneous Vulnerable Learner Groups. Journal of International Students, (11)3, 706-722. doi: 10.32674/jis.v11i3.2718
Rivlin, A.M. (1999). On Economic Literacy. Federal Reserve Board June, 1999. Rivlin, A.M. On economic literacy. Presented by the Vice Chair, Board of Governors of the Federal Reserve System at the Economic Literacy Symposium, 13 May.
Rahmatullah, R. (2018). Pembelajaran Ekonomi Berjatidiri Bangsa. JEKPEND” Jurnal Ekonomi Dan Pendidikan”, 1(1), 10–16. http:// eprints.unm.ac.id/id/eprint/17518
Sebastian, H., & Happ, R. (2023). Challenges in Understanding Western Economic and Financial Concepts from the Perspective of Young Adults with a Post-Soviet Migration Background in Germany—Findings from a Qualitative Interview Study. Journal of Risk and Financial Management 16: 165. https://doi.org/10.3390/ jrfm16030165
Scheffler, N. (2018). Wirtschaftsbürger in einer digital geprägten Welt—Curriculare Integration ökonomischer Medienbildung auf der Stufe Sek II (Gymnasium) im Fach ‘Wirtschaft und Recht’[Economic citizens in a digital world—Curricular integration of economic media educationin upper secondary school in the subjectof economics with law]. University of St. Gallen.
Stieger, S. & Jekel, T. (2019). Ideology, education, and financial literacy Uncovering neoliberal ideology in assessment studies of economics education – the case of Austria. Journal of Social Science Education, (18) 2, 4-26.
Stevenson B and J Wolfers (2020), Principles of Economics, Macmillan Learning.
Soroko A (2022), Teaching Young People More Than ‘How to Survive Austerity’: From Traditional Financial Literacy to Critical Economic Literacy Education’. Theory and Research in Social Education, (55)1, 128-151.
Stevenson B and J Wolfers (2020), Principles of Economics, Macmillan Learning.
Skackauskiene, I.; Vilkaite-Vaitone, N. (2023) Green Marketing and Customers’ Purchasing Behavior: A Systematic Literature Review for Future Research Agenda. Energies, 16, 456. https://doi.org/ 10.3390/en16010456.
Tekbas, M. (2021). An Empirical Research on the Factors Determining Economic Literacy Level. Management and Economics Review, (6)1, 99-110.
Utaminingsih, S., Fajrie, N., Bamiro, N.B. and Azman, M.N.A. (2023). “Teachers and students perception of technology and sustainable adoption framework in the pedagogical process: a systematic review. International Journal of Learning, Teaching and Educational Research, Vol. 22 No. 12, pp. 162-186, doi: 10.26803/ijlter.22.12.9.
Walstad, W.B., Watts, M. & Rebeck, K. (2007). Test of Understanding of College Economics (Fourth Edition) Examiner’s Manual. New York, NY: National Council on Economic Education.
Walstad, W.B., Rebeck, K. & Butters, R.B. (2013) The Test of Economic Literacy: Development and Results. The Journal of Economic Education, (44)3, 298-309.
Walstad, W. (1998). Why it’s important to understand economics. The Region, Federal Reserve Bank of Minneapolis, 12(Dec), 22–26. Retrieved from www.minneapolisfed.org/publications_papers/pub_display.cfm?id=3582
Walstad, W.B., Rebeck, K., Butters, R.B. (2010). Basic Economics Test Examiner’s Manual (Third Edition). Council for Economic Education, New York, NY.
Walstad, W.B., Rebeck, K., Butters, R.B. (2010). Test of Economic Knowledge Examiner’s Manual (Second Edition). Council for Economic Education. New York, NY
Walstad, B.W., Watts, M. & Rebeck, K. (2007). Test of Understanding of College Economics (Fourth Edition) Examiner’s Manual. National Council on Economic Education, York, NY
Welsandt, N.; Abs, H.J. (2023). TestingEconomic Literacy: An Overview of Measurement Instruments of the Past 30 Years. In: Journal of Social Science Education 2023(2). https://doi.org/10.11576/jsse-5855
Winther,E.(2010).Kompetenzmessung in der beruflichen Bildung [Competence measurement in vocational education and training]. W. Bertelsmann Verlag. https://doi.org/10.3278/6004148w
Winther, E.,Seeber, S.,Weber, S.,Bley, S.,Festner, D.,Kreuzer, C.,Rudeloff,M., Sangmeister, J.,& Wiethe-Körpich, M. (2016). ALUSIM test material. [Unpublished manuscript]. Department of Vocational Education and Training, University of Duisburg-Essen
Wuttke, E., Seifried, J., & Schumann, S. (Eds.). (2016). Economic Competence and Financial Literacy of Young Adults: Status and Challenges (1st ed., Vol. 3). Verlag Barbara Budrich. https://doi.org/10.2307/j.ctvbkk29d
Yasmin, F., Kouser, R., Hassan, I. and Ahmad, W. (2014). Determinants of Economic Literacy at University Level: A Case of Pakistan. Pakistan Journal of Commerce and Social Sciences, (3)8, 914-924.
Yayar, R. & Karaca, O.E. (2017). Economic Literacy Levels of Public Officers in Turkey. Pakistan Journal of Commerce and Social Sciences, 11 (1), 49-65.
Yıldırım, G. & Oztürk, C. (2017). An invesigation of the views of the field experts and teachers related to economic literacy and its education. Erciyes Journal of Education, 1(2), 1-22.
Yusop, S.R.M.; Rasul, M.S.; Mohamad Yasin, R.; Hashim, H.U.; Jalaludin, N.A.(2022) An Assessment Approaches and Learning Outcomes in Technical and Vocational Education: A Systematic Review Using PRISMA. Sustainability, (14), 5225. https://doi.org/10.3390/su14095225
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Nurudeen Babatunde Bamiro, Zainizam Zakariyah, Qian Li, Sulaiman Adewale
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
