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Gender Differences in Financial Advice

Author

Listed:
  • Tabea Bucher-Koenen
  • Andreas Hackethal
  • Johannes Koenen
  • Christine Laudenbach

Abstract

Based on data gathered from 27,000 real-world meetings between financial advisors and clients of a large German bank, we show that advisors offer more self-serving advice to women, while men are more likely to receive sales fee rebates and less likely to be recommended expensive in-house multi-asset (IHMA) funds. Additional client and advisor surveys provide evidence consistent with statistical discrimination based on gender as a proxy for client financial sophistication, with female clients exhibiting lower financial literacy, confidence, and price sensitivity. Moreover, female advisors report less confidence in their own professional skills and engage in less discrimination than male colleagues.

Suggested Citation

  • Tabea Bucher-Koenen & Andreas Hackethal & Johannes Koenen & Christine Laudenbach, 2025. "Gender Differences in Financial Advice," American Economic Review, American Economic Association, vol. 115(12), pages 4218-4252, December.
    • Handle: RePEc:aea:aecrev:v:115:y:2025:i:12:p:4218-52
    DOI: 10.1257/aer.20211024
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    Citations

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    Cited by:

    1. Bello, Piera, 2023. "Gender-based price discrimination in the annuity market: Evidence from Chile," European Economic Review, Elsevier, vol. 151(C).
    2. Curi, Claudia & Dibiasi, Andreas & Ploner, Matteo & Tonin, Mirco, 2026. "Gender Differences in Pension Investment: The Role of Biased Advice," IZA Discussion Papers 18463, IZA Network @ LISER.
    3. Janssen, Bennet & Zhang, Youpeng, 2025. "Do retail investors care about ESG ratings?," ZEW Discussion Papers 25-074, ZEW - Leibniz Centre for European Economic Research.
    4. Laudenbach, Christine & Malmendier, Ulrike & Niessen-Ruenzi, Alexandra, 2024. "The long-lasting effects of experiencing communism on attitudes towards financial markets," SAFE Working Paper Series 429, Leibniz Institute for Financial Research SAFE.
    5. Tabea Bucher-Koenen & Rob Alessie & Annamaria Lusardi & Maarten van Rooij, 2021. "Fearless Woman. Financial Literacy and Stock Market Participation," Working Papers 708, DNB.
    6. Ingar Haaland & Ole-Andreas Elvik Næss & Ingar K. Haaland, 2023. "Misperceived Returns to Active Investing," CESifo Working Paper Series 10257, CESifo.
    7. Meyer, Steffen & Uhr, Charline & Loos, Benjamin & Hackethal, Andreas, 2023. "Switching from commissions on mutual funds to flat-fees: How are advisory clients affected?," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 423-449.

    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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