From Patriarchy to Partnership: Gender Equality and Household Finance
62 Pages Posted: 17 Aug 2020 Last revised: 11 Feb 2022
Date Written: July 15, 2020
We obtain a model-driven measure of gender norms on intra-household financial decision making by leveraging dramatic variation across Italian cohorts and regions in the gender of the household head. We use these estimates to identify the effects of gender parity on household financial decisions. More egalitarian norms increase household participation in financial markets, equity holdings, asset diversification, and returns on investments. This evidence suggests that gender roles can have large economic costs. Consistent with this view, we show that patriarchal norms began receding in the early 1990s, when a pension reform made it too costly to comply with traditional roles.
Keywords: Household Finance, Social Norms, Gender Equality
JEL Classification: D14, G11, G41
Suggested Citation: Suggested Citation