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Understanding the Gender Gap in Economic Literacy – Evidence from Germany

Author

Listed:
  • Haag, Lucy
  • Oberrauch, Luis
  • Brahm, Taiga
  • Biewen, Martin

Abstract

Economic literacy has far-reaching consequences on savings and investments and ultimately affects individual financial well-being. Several studies report a gender difference in economic literacy in favor of males, disadvantaging women and posing a threat to gender equality. However, there is limited evidence addressing the factors underlying the gender gap. Using a representative sample of German high school students (N=1,958), we investigate gender differences in students’ economic literacy. Additionally, we examine potential explanatory factors for the gap that have been reported in previous studies focusing more narrowly on financial literacy and personal finance. Results confirm a substantial gender gap in economic literacy favoring boys (0.25 SD). Regression models and Oaxaca-Blinder decomposition analyses reveal math ability and interest in economics as important drivers for the gender gap. Self-efficacy and risk aversion are further factors accounting for the gap while most socialization variables appear to have little relevance. Including effort as a control variable increases the gap, suggesting that the gap may have been underestimated in previous studies that did not consider this factor. Our study provides important implications for policy interventions to mitigate the gender gap in economic literacy.

Suggested Citation

  • Haag, Lucy & Oberrauch, Luis & Brahm, Taiga & Biewen, Martin, 2025. "Understanding the Gender Gap in Economic Literacy – Evidence from Germany," EconStor Preprints 308430, ZBW - Leibniz Information Centre for Economics.
  • Handle: RePEc:zbw:esprep:308430
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Economic Literacy; Gender Gap;

    JEL classification:

    • A21 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Pre-college

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