Marriage and the Financial Knowledge Gender Gap
61 Pages Posted: 4 Dec 2018
Date Written: November 10, 2017
Prior studies of financial literacy find a significant knowledge gap between men and women. This has led some to speculate that women are either less interested in, or less able to understand, financial concepts. Household production and marital bargaining theory may explain why low earning married women with children will rationally choose to delegate financial decisions to their husband. Descriptive statistics show that higher earning women, single, and married women are more financially knowledgeable than men. In a multivariate model, we find that women with children have lower financial literacy scores than married men and that higher earning married women are more financially literate than lower earning married women. There is still evidence of a gender gap even among higher earning women with no children compared to married men, but this gap appears to be declining within the youngest age cohorts.
Suggested Citation: Suggested Citation