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Gender, stock market participation and financial literacy

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  • Almenberg, Johan
  • Dreber, Anna

Abstract

Women participate less than men in the stock market and score lower on financial literacy. We explore the link between this gender gap in stock market participation and financial literacy. Using survey data on a random sample of 1300 individuals that is representative of the Swedish population, we show that the estimated gender gap in stock market participation diminishes when we control for basic financial literacy, essentially a measure of numeracy. A gender gap in risk taking remains significant also when controlling for financial literacy.

Suggested Citation

  • Almenberg, Johan & Dreber, Anna, 2015. "Gender, stock market participation and financial literacy," Economics Letters, Elsevier, vol. 137(C), pages 140-142.
  • Handle: RePEc:eee:ecolet:v:137:y:2015:i:c:p:140-142
    DOI: 10.1016/j.econlet.2015.10.009
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    Cited by:

    1. Neubert, Milena & Bannier, Christina E., 2016. "Actual and perceived financial sophistication and wealth accumulation: The role of education and gender," Annual Conference 2016 (Augsburg): Demographic Change 145593, Verein für Socialpolitik / German Economic Association.
    2. Bannier, Christina E. & Neubert, Milena, 2016. "Gender differences in financial risk taking: The role of financial literacy and risk tolerance," Economics Letters, Elsevier, vol. 145(C), pages 130-135.
    3. Bannier, Christina E. & Schwarz, Milena, 2017. "Skilled but unaware of it: Occurrence and potential long-term effects of females' financial underconfidence," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168188, Verein für Socialpolitik / German Economic Association.
    4. Boschini, Anne & Dreber, Anna & von Essen, Emma & Muren, Astri & Ranehill, Eva, 2014. "Gender and economic preferences in a large random sample," Research Papers in Economics 2014:6, Stockholm University, Department of Economics.
    5. Pikulina, Elena & Renneboog, Luc & Tobler, Philippe N., 2017. "Overconfidence and investment: An experimental approach," Journal of Corporate Finance, Elsevier, vol. 43(C), pages 175-192.
    6. Lereko Rasoaisi & Kalebe M. Kalebe, 2015. "Determinants of Financial Literacy among the National University of Lesotho Students," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(9), pages 1050-1060, September.
    7. Klapper, Leora & Lusardi, Annamaria & Panos, Georgios A., 2012. "Financial literacy and the financial crisis," Policy Research Working Paper Series 5980, The World Bank.
    8. French, Declan & McKillop, Donal, 2016. "Financial literacy and over-indebtedness in low-income households," International Review of Financial Analysis, Elsevier, vol. 48(C), pages 1-11.
    9. Bianchi, Milo, 2017. "Financial Literacy and Portfolio Dynamics," TSE Working Papers 17-808, Toulouse School of Economics (TSE).
    10. Dumičić Ksenija & Žmuk Berislav, 2015. "Statistical Control Charts: Performances of Short Term Stock Trading in Croatia," Business Systems Research, De Gruyter Open, vol. 6(1), pages 22-35, March.
    11. repec:eee:pacfin:v:43:y:2017:i:c:p:218-237 is not listed on IDEAS
    12. Shen, Chung-Hua & Lin, Shih-Jie & Tang, De-Piao & Hsiao, Yu-Jen, 2016. "The relationship between financial disputes and financial literacy," Pacific-Basin Finance Journal, Elsevier, vol. 36(C), pages 46-65.
    13. Dorothea Schäfer, 2016. "Distributional Effects of Taxing Financial Transactions and the Low Interest Rate Environment," Discussion Papers of DIW Berlin 1609, DIW Berlin, German Institute for Economic Research.
    14. Klapper, Leora & Lusardi, Annamaria & Panos, Georgios A., 2013. "Financial literacy and its consequences: Evidence from Russia during the financial crisis," Journal of Banking & Finance, Elsevier, vol. 37(10), pages 3904-3923.
    15. Žmuk Berislav, 2016. "Capabilities of Statistical Residual-Based Control Charts in Short- and Long-Term Stock Trading," Naše gospodarstvo/Our economy, Sciendo, vol. 62(1), pages 12-26, March.
    16. Agnese Romiti & Mariacristina Rossi, 2014. "Wealth decumulation, portfolio composition and financial literacy among European elderly," Carlo Alberto Notebooks 375, Collegio Carlo Alberto.
    17. Annamaria Lusardi, 2012. "Numeracy, financial literacy, and financial decision-making," NBER Working Papers 17821, National Bureau of Economic Research, Inc.
    18. Winter, Joachim & Lührmann, Melanie & Serra Garcia, Marta, 2013. "The effects of financial literacy training: Evidence from a field experiment in German high schools," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79744, Verein für Socialpolitik / German Economic Association.
    19. Marinelli, Nicoletta & Mazzoli, Camilla & Palmucci, Fabrizio, 2017. "How does gender really affect investment behavior?," Economics Letters, Elsevier, vol. 151(C), pages 58-61.

    More about this item

    Keywords

    Stock market participation; Gender; Financial literacy; Numeracy; Risk attitudes;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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