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Culture, Gender, and Financial Literacy

Author

Listed:
  • Davoli, Maddalena

    (Goethe University Frankfurt)

  • Rodríguez-Planas, Núria

    (Queens College, CUNY)

Abstract

Using a nationally representative US sample of 9,623 adults from 27 countries of ancestries, we find that the higher the degree of gender convergence in financial knowledge in the country of ancestry, the higher the financial knowledge of women in the US relative to their male counterparts. After ruling out gender differences in cognitive and non-cognitive skills as potential mechanisms, we find that higher patience and lower altruism in the country of ancestry are associated with greater financial knowledge for men but not for women in the US. Once we remove any country-of-ancestry gender variation from these preferences, gender convergence in financial knowledge continues to be associated with women's (relative and absolute) greater financial literacy in the US, underscoring that gender differences in financial literacy are socially constructed. This relative and absolute female improvement is particularly robust for knowledge related to inflation and risk-diversification.

Suggested Citation

  • Davoli, Maddalena & Rodríguez-Planas, Núria, 2022. "Culture, Gender, and Financial Literacy," IZA Discussion Papers 15054, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15054
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    References listed on IDEAS

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    4. Davoli, Maddalena & Rodríguez-Planas, Núria, 2020. "Culture and adult financial literacy: Evidence from the United States," Economics of Education Review, Elsevier, vol. 78(C).
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    6. Alessandra Fogli & Raquel Fernandez, 2009. "Culture: An Empirical Investigation of Beliefs, Work, and Fertility," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 146-177, January.
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    Keywords

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    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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