Gender- and Education-Related Effects of Financial Literacy and Confidence on Financial Wealth

44 Pages Posted: 1 Mar 2017 Last revised: 8 Jun 2018

See all articles by Christina E. Bannier

Christina E. Bannier

Justus-Liebig-University Giessen

Milena Schwarz

Justus-Liebig University Giessen

Multiple version iconThere are 2 versions of this paper

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

Bannier, Christina E. and Schwarz, Milena, Gender- and Education-Related Effects of Financial Literacy and Confidence on Financial Wealth (March 8, 2018). Journal of Economic Psychology, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2925196 or http://dx.doi.org/10.2139/ssrn.2925196

Christina E. Bannier (Contact Author)

Justus-Liebig-University Giessen ( email )

Licher Str. 62
Gie├čen, 35394
Germany
+49 641 99 22551 (Phone)

Milena Schwarz

Justus-Liebig University Giessen ( email )

Licher Str. 62
Banking and Finance
Giessen, 35394
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
207
Abstract Views
1,173
rank
158,010
PlumX Metrics