The Gender Gap in Stock Market Participation: Evidence from Stock Gifting

41 Pages Posted: 13 Aug 2023

See all articles by Jennifer Itzkowitz

Jennifer Itzkowitz

Seton Hall University - Department of Finance & Legal Studies

Jesse Itzkowitz

Ipsos Behavioral Science Center

Andrew Schwartz

Seton Hall University; University of California, Berkeley, The Richard & Rhoda Goldman School of Public Policy, Students

Date Written: August 13, 2023

Abstract

Using recent data from an American app-based consumer stock brokerage, we provide novel evidence about how to overcome gender differences in stock market participation. We show that fewer women than men are encouraged to participate in the stock market. However, following equal encouragement to enter the stock market, roughly the same proportion of men and women continue to participate. We use the stock gift cards, a quantifiable measure of behavior, as a proxy for encouragement to enter the stock market. We find that even among children too young to express an interest in finance, boys receive more stock gift cards than girls. The stock gift gender gap is larger in communities with greater gender inequity. The results are best explained by gender norms which create the perception that men are more interested in finance than women.

Keywords: Stock Market Participation, Gender Gap, Gender Norms

JEL Classification: G11, J16, D10

Suggested Citation

Itzkowitz, Jennifer and Itzkowitz, Jesse and Schwartz, Andrew, The Gender Gap in Stock Market Participation: Evidence from Stock Gifting (August 13, 2023). Available at SSRN: https://ssrn.com/abstract=4539694 or http://dx.doi.org/10.2139/ssrn.4539694

Jennifer Itzkowitz (Contact Author)

Seton Hall University - Department of Finance & Legal Studies ( email )

400 South Orange Avenue
South Orange, NJ 07079
United States

Jesse Itzkowitz

Ipsos Behavioral Science Center ( email )

360 Park Avenue South
Floor 17
New York, NY 10010
United States

Andrew Schwartz

Seton Hall University ( email )

400 S Orange Avenue
South Orange, NJ 07079
United States

University of California, Berkeley, The Richard & Rhoda Goldman School of Public Policy, Students ( email )

Berkeley, CA
United States

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