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Gender differences in financial knowledge, attitudes, and behaviors: Accounting for socioeconomic disparities and psychological traits

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  • Jennifer Robson
  • Johanna Peetz

Abstract

A large body of international research finds a persistent gender gap in the financial literacy of women compared to men, but explanations for this gap remain a topic of active debate. In this observational study, we explore the explanatory value of psychological characteristics, in addition to demographic variables and roles in household financial decision making. We begin by documenting the expected gender differences in financial knowledge, attitudes, and behaviors, using a national survey of adult Canadians (n = 21,789) that provides population‐level estimates. Next, we contrast these results against a second Canadian survey data set (n = 3,502) where we are able to control for individual differences in psychological traits. Results of OLS regressions suggest that gender is not a significant predictor on three scales of financial capability. Decomposition analysis finds underlying differences in individual characteristics (endowments) explain the majority of the observed gender gap in financial literacy when psychological traits are included in the model.

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  • Jennifer Robson & Johanna Peetz, 2020. "Gender differences in financial knowledge, attitudes, and behaviors: Accounting for socioeconomic disparities and psychological traits," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(3), pages 813-835, September.
    • Handle: RePEc:bla:jconsa:v:54:y:2020:i:3:p:813-835
    DOI: 10.1111/joca.12304
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    2. Steve Agnew & Valerie A. Sotardi, 2024. "Family Financial Socialisation and its Impact on Financial Confidence, Intentions, and Behaviours among New Zealand Adolescents," Working Papers in Economics 24/05, University of Canterbury, Department of Economics and Finance.
    3. Elise Frølich Furrebøe & Ellen Katrine Nyhus & Andrew Musau, 2023. "Gender differences in recollections of economic socialization, financial self‐efficacy, and financial literacy," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 69-91, January.
    4. Jennifer, Robson & Lindsay M., Tedds, 2023. "The Canada Disability Benefit: Battling Abelism in Design and Implementation," MPRA Paper 116191, University Library of Munich, Germany.
    5. Steve Agnew & Valerie A. Sotardi, 2024. "The Impact of Pocket Money and Term Time Employment on the Financial Confidence of Adolescents in New Zealand," Working Papers in Economics 24/10, University of Canterbury, Department of Economics and Finance.
    6. Alison Preston & Robert E. Wright, 2024. "When Does the Gender Gap in Financial Literacy Begin?," The Economic Record, The Economic Society of Australia, vol. 100(328), pages 44-73, March.
    7. Preston, Alison & Qiu, Lili & Wright, Robert E., 2022. "A Study of the Chinese Gender Gap in Financial Literacy," IZA Discussion Papers 15253, Institute of Labor Economics (IZA).

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