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The financial literacy gender gap and the role of culture

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  • Rink, Ute
  • Walle, Yabibal M.
  • Klasen, Stephan

Abstract

This paper empirically investigates the role of culture in explaining the frequently reported differences in financial literacy between women and men. Using nationally representative survey data from India, we find that women are significantly less financially literate than men. This gender gap is not observable, however, when we only consider matrilineal states. Moreover, matrilineal women are more financially knowledgeable than patriarchal women. Using the Blinder-Oaxaca decomposition method, we find that education, English language skills and the use of different information sources, such as newspapers and TV, are key transmission channels in explaining differences in financial knowledge between men and women in patriarchal states, and between patriarchal and matrilineal societies.

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  • Rink, Ute & Walle, Yabibal M. & Klasen, Stephan, 2021. "The financial literacy gender gap and the role of culture," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 117-134.
    • Handle: RePEc:eee:quaeco:v:80:y:2021:i:c:p:117-134
    DOI: 10.1016/j.qref.2021.02.006
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    Cited by:

    1. Antonia Grohmann & Annekathrin Schoofs, 2018. "Financial Literacy and Intra-Household Decision Making: Evidence from Rwanda," Discussion Papers of DIW Berlin 1720, DIW Berlin, German Institute for Economic Research.
    2. Raquel Fonseca & Simon Lord, 2020. "Canadian Gender Gap in Financial Literacy: Confidence Matters," Hacienda Pública Española / Review of Public Economics, IEF, vol. 235(4), pages 153-182, December.
    3. Tabea Bucher-Koenen & Rob Alessie & Annamaria Lusardi & Maarten van Rooij, 2021. "Fearless Woman. Financial Literacy and Stock Market Participation," Working Papers 708, DNB.
    4. Grohmann, Antonia & Filipiak, Ute & Heyerhorst, Franziska, 2017. "Intra-household decision making and long-term welfare effects: New empirical evidence," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168140, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    Gender; Financial literacy; Culture; Matrilineal and patriarchal societies; Blinder-Oaxaca decomposition;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Z1 - Other Special Topics - - Cultural Economics

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