Understanding the Gender Gap in Financial Well-Being

Increasingly, evidence of a gender gap in a range of economic and social contexts alongside a gender wage gap, has been demonstrated. An element of this can be considered through the body of economic, social and behavioural literature which highlights a gap between genders in their financial experiences and their ability to meet their financial needs – also referred to as financial well-being. This study uses EU timeseries survey data to investigate how a gender gap manifests in indicative components of financial wellbeing – experience of prices and risk, and expectations on spending and saving. Understanding different dimensions of this gender gap and determining how much is due to differences in income and financial situation, provides practical insights into potential policy interventions. Results indicate a persistent gender gap in key indicators of financial well-being, measured through male and female experience of changes in prices and risk aversion. This gap is not explained by a gap in income or financial situation, and indicates potential market, institutional or other, structural differences. Further analysis is warranted to continue to build understanding and inform the design of appropriate policy responses.