Download This PaperGender- and Education-Related Effects of Financial Literacy and Confidence on Financial Wealth
44 Pages Posted: 1 Mar 2017 Last revised: 8 Jun 2018
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Gender- and Education-Related Effects of Financial Literacy and Confidence on Financial Wealth
Gender- and Education-Related Effects of Financial Sophistication on Wealth Accumulation: Evidence from Heteroscedasticity-Based Instruments
Date Written: March 8, 2018
Abstract
This study examines the influence of actual and perceived financial knowledge (i.e., financial literacy and confidence) on financial wealth. We show that consideration of gender and education as moderators helps to uncover intricate effects. Greater financial literacy increases wealth, with higher education strengthening this effect for women, but weakening it for men. Men's wealth also rises strongly in confidence, regardless of their education, while there is hardly any confidence effect for women. Our results are robust against one-time wealth effects, mode of financial decision making and the employment of different instrumental variables and confidence measures.
Keywords: Household finance, financial literacy, confidence, wealth, gender, education
JEL Classification: D91, G11, D83, J26
Suggested Citation: Suggested Citation