Raquel Fonseca|Kathleen J. Mullen|Gema Zamarro|Julie Zissimopoulos
What Explains the Gender Gap in Financial Literacy? The Role of Household Decision-Making
RAND Corporation|RAND Corporation|Arkansas Department of Education|Center for Social and Economic Research|University of Southern California|RAND Corporation
research shown financial illiteracy widespread among women many women unfamiliar even basic economic concepts needed make saving investment decisions gender gap financial literacy may contribute differential levels retirement preparedness women men however little known determinants gender gap financial literacy using data rand american life panel authors examined potential explanations gender gap including role marriage division financial decisionmaking among couples found differences demographic characteristics women men explain much financial literacy gap whereas education income current past marital status reduced observed gap around 25 oaxaca decomposition revealed great majority gender gap financial literacy explained differences covariates characteristics men women due coefficients literacy produced find strong support specialization financial decisionmaking within couples gender instead found decisionmaking within couples sensitive relative education level spouses women men