Boosting Women: Why They Decline to Provide Responses to Financial Literacy Questions

Abstract

It is a staggering statistic that half of the population consistently outperform the remainder when it comes to financial literacy. But could the measurement tools have inherent gender bias? This study investigates the reasons for selecting the non-response option in financial literacy questions, including numerical self-efficacy, risk aversion, overconfidence and socio-economic status. Our analysis finds overwhelming evidence that females avoid answering these financial literacy questions, and we infer that having an interest in money matters at school age is a potential pathway for effective intervention. These results are important for shaping policy and providing resources that close the gap.

Keywords: Financial literacy, women, gender studies, measurement bias, financial literacy education

JEL Classification: G53, G40