Gender, Stock Market Participation and Financial Literacy

SSE/EFI Working Paper Series No. 737

17 Pages Posted: 7 Jul 2011 Last revised: 18 Jun 2012

See all articles by Johan Almenberg

Johan Almenberg

affiliation not provided to SSRN

Anna Dreber

Stockholm School of Economics - Department of Economics

Date Written: June 18, 2012

Abstract

Women typically participate less than men in the stock market, while also scoring lower on financial literacy. We explore the link between the gender gap in stock market participation and financial literacy. Using survey data on a random sample of 1,300 individuals that is representative of the Swedish population, we show that controlling for basic financial literacy, essentially a measure of numeracy that does not require knowledge about the stock market, may explain a large part of the gender gap in stock market participation. We also find that women report being less risk taking than men. This gender gap in risk attitudes remains significant also when controlling for financial literacy.

Keywords: stock market participation, gender, financial literacy, numeracy, risk attitudes

JEL Classification: D14, G11

Suggested Citation

Almenberg, Johan and Dreber, Anna, Gender, Stock Market Participation and Financial Literacy (June 18, 2012). SSE/EFI Working Paper Series No. 737. Available at SSRN: https://ssrn.com/abstract=1880909 or http://dx.doi.org/10.2139/ssrn.1880909

Johan Almenberg (Contact Author)

affiliation not provided to SSRN

Anna Dreber

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden

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