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Assessing gender gaps in financial knowledge and self-confidence: Evidence from international data

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  • Aristei, David
  • Gallo, Manuela

Abstract

In this paper, we use internationally comparable microdata to assess gender differentials in objective financial knowledge and self-confidence in own financial competencies. We find significant differences in the number of correct answers and “Don't know/Refused” responses to basic financial questions between women and men. Furthermore, we provide first international evidence of gender gaps in financial knowledge overconfidence and underconfidence. Results from nonlinear Blinder-Oaxaca decompositions highlight that most of these gaps remain unexplained by differences in observed characteristics and may be due instead to unobserved behavioural and psychological traits and to cultural and social norms about gender roles in financial decision-making.

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  • Aristei, David & Gallo, Manuela, 2022. "Assessing gender gaps in financial knowledge and self-confidence: Evidence from international data," Finance Research Letters, Elsevier, vol. 46(PA).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pa:s1544612321002695
    DOI: 10.1016/j.frl.2021.102200
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    2. Ooi, Elizabeth, 2023. "Culture and confidence in financial knowledge testing," Pacific-Basin Finance Journal, Elsevier, vol. 77(C).
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    4. Long, Trinh Quang & Hoang, Trang Cam & Simkins, Betty, 2023. "Gender gap in digital literacy across generations: Evidence from Indonesia," Finance Research Letters, Elsevier, vol. 58(PD).
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    7. Riefler, Raul & Tosun, Onur Kemal & Baeckström, Ylva, 2023. "The role of gender in sales behaviour: Evidence from institutional financial brokerage," Finance Research Letters, Elsevier, vol. 55(PA).

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    More about this item

    Keywords

    Financial knowledge; Self-confidence; Overconfidence; Underconfidence; Gender differences; Blinder-Oaxaca decomposition;
    All these keywords.

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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