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Household Financial Fragility During COVID-19: the Power of Financially Literate Women

Author

Listed:
  • Pepur Sandra

    (University of Split, Faculty of Economics, Business and Tourism, Cvite Fiskovića 5, 21000 Split, Croatia, 021/430-630. Fax: 021/430-705)

  • Bulog Ivana

    (University of Split, Faculty of Economics, Business and Tourism, Split, Croatia.)

  • Smiljanić Ana Rimac

    (University of Split, Faculty of Economics, Business and Tourism, Split, Croatia.)

Abstract

This paper analyses household financial fragility during the COVID-19 pandemic. Considering the barging theory in households’ decision-making, this paper proposes that women’s financial literacy and their involvement in paid and unpaid work will influence family financial fragility in times of crisis. The results show that women’s financial literacy, their participation in the labour market, and their financial independence have a significant and positive effect on the family’s financial situation during the pandemic. Moreover, the level of women’s unpaid work was identified as a significant element that jeopardizes family financial stability. The results further support the bargaining power theory regarding a better understanding of the complexity of decision-making within households. The results point to a new channel for preserving family financial stability, through the improvement of women’s financial literacy and the development of institutional and social support for their participation in the labour market.

Suggested Citation

  • Pepur Sandra & Bulog Ivana & Smiljanić Ana Rimac, 2022. "Household Financial Fragility During COVID-19: the Power of Financially Literate Women," Zagreb International Review of Economics and Business, Sciendo, vol. 25(s1), pages 31-44.
    • Handle: RePEc:vrs:zirebs:v:25:y:2022:i:s1:p:31-44:n:1003
    DOI: 10.2478/zireb-2022-0023
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    References listed on IDEAS

    as
    1. Annamaria Lusardi & Daniel Schneider & Peter Tufano, 2011. "Financially Fragile Households: Evidence and Implications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(1 (Spring), pages 83-150.
    2. Da Ke, 2021. "Who Wears the Pants? Gender Identity Norms and Intrahousehold Financial Decision‐Making," Journal of Finance, American Finance Association, vol. 76(3), pages 1389-1425, June.
    3. Johnston, David W. & Kassenboehmer, Sonja C. & Shields, Michael A., 2016. "Financial decision-making in the household: Exploring the importance of survey respondent, health, cognitive ability and personality," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 42-61.
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    More about this item

    Keywords

    household financial fragility; financial literacy; indebtedness; women; unpaid work;
    All these keywords.

    JEL classification:

    • B54 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Feminist Economics
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G50 - Financial Economics - - Household Finance - - - General
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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