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Financial Literacy and Intra-Household Decision Making: Evidence from Rwanda

Author

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  • Antonia Grohmann
  • Annekathrin Schoofs

Abstract

Despite considerable policy efforts, women continue to be underrepresented in positions of power and decision making. As an important aspect of women empowerment, we examine women’s participation in intrahousehold financial decision making and how this is affected by financial literacy. Using both OLS and IV regression analysis, we show that women with higher financial literacy are more involved in household financial decisions. In line with the literature, we further find that women are less financially literate than men. Results from decomposition analysis show that education and personality traits (openness, happiness, and depression) drive this financial literacy gender gap.

Suggested Citation

  • 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.
  • Handle: RePEc:diw:diwwpp:dp1720
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    References listed on IDEAS

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    More about this item

    Keywords

    financial literacy; women empowerment; intra-household decision making;

    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

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