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Gender gaps in financial literacy: a multi-arm RCT to break the response bias in surveys

Author

Listed:
  • Laura Hospido

    (Banco de España)

  • Nagore Iriberri

    (Banco de España)

  • Margarita Machelett

    (Banco de España)

Abstract

Gender gaps in financial literacy are pervasive and persistent. While most studies explore why women know less, these gaps might also re?ect differential behavior in providing responses in surveys. Women might be more likely to be uncertain, or men might be more likely to choose an answer when uncertain, while women might tend to opt for “I do not know”, leading to imprecise measures of the gender gap in ?nancial literacy. We test for the effectiveness of three interventions to reduce the frequency of “I do not know”, in a randomized control trial online survey administered to 6,000 participants. The standard survey, our control group, includes the possibility of answering “I do not know”. The three treatment arms exclude the “I do not know” answer, offer incentives for correct answers or inform survey takers of the existing gender gap in choosing “I do not know”. All interventions are very effective in reducing the frequency of “I do not know”. The information is most effective for women, while the incentives are most effective for men. As regards gender gaps, only the provision of information significantly reduces the gender gap in choosing “I do not know”, as well as the gender gap in ?nancial literacy.

Suggested Citation

  • Laura Hospido & Nagore Iriberri & Margarita Machelett, 2024. "Gender gaps in financial literacy: a multi-arm RCT to break the response bias in surveys," Working Papers 2401, Banco de España.
    • Handle: RePEc:bde:wpaper:2401
    DOI: https://doi.org/10.53479/35752
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    References listed on IDEAS

    as
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    Cited by:

    1. Alessio D'Ignazio & Ludovica Galotto & Cristiana Rampazzi, 2024. "Tackling the gender gap in financial literacy. Evidence from a financial education program in the workplace," Questioni di Economia e Finanza (Occasional Papers) 855, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    financial literacy; gender gaps; survey methods;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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