IDEAS home Printed from https://ideas.repec.org/a/oup/jafrec/v30y2021i3p225-250..html
   My bibliography  Save this article

Financial Literacy and Intra-household Decision Making: Evidence from Rwanda
[Women, land and empowerment in Rwanda]

Author

Listed:
  • Antonia Grohmann
  • Annekathrin Schoofs

Abstract

Research has consistently shown that women’s involvement in household decision making positively affects household outcomes such as nutrition and education of children. Is financial literacy a determinant for women to participate in intra-household decision making? Using data on savings groups in Rwanda, we examine this relationship and show that women with higher financial literacy are more involved in financial and expenditure decisions. Instrumental variable estimations suggest a causal link. For this reason, we perform a decomposition analysis breaking down the gender gap in financial literacy into differences based on observed socio-demographic and psychological characteristics and differences in returns on these characteristics. Our results show high explanatory power by education, happiness, symptoms of depression and openness but also suggest that a substantial fraction can be explained by differences in returns. We argue that this results from a strong role of society and culture.

Suggested Citation

  • Antonia Grohmann & Annekathrin Schoofs, 2021. "Financial Literacy and Intra-household Decision Making: Evidence from Rwanda [Women, land and empowerment in Rwanda]," Journal of African Economies, Centre for the Study of African Economies, vol. 30(3), pages 225-250.
    • Handle: RePEc:oup:jafrec:v:30:y:2021:i:3:p:225-250.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jae/ejaa007
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ceyla Antonio-Anderson & Elena Fuentes & Maricela Carolina Peña Cárdenas, 2024. "Incidencia de los factores socioeconómicos en la alfabetización financiera," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 19(1), pages 1-25, Enero - M.
    2. Man Yao & Tori I. Rehr & Erica P. Regan, 2023. "Gender Differences in Financial Knowledge among College Students: Evidence from a Recent Multi-institutional Survey," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 693-713, September.

    More about this item

    Keywords

    financial literacy; women empowerment; intra-household decision making; JEL classification: D14; J16; G02;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jafrec:v:30:y:2021:i:3:p:225-250.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/csaoxuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.