Canadian Gender Gap in Financial Literacy: Confidence Matters

Raquel Fonseca () and Simon Lord

Cahiers de recherche / Working Papers from Chaire de recherche sur les enjeux économiques intergénérationnels / Research Chair in Intergenerational Economics

Abstract: We construct a financial literacy index as well as a financial confidence index in order to evaluate the effect of confidence on financial literacy, and more specifically, on the gender gap in financial literacy. Results confirm the existence of a gender gap in financial literacy in Canada, and show that having a higher confidence in one’s financial skills and knowledge is indeed a factor that increases one’s financial literacy. Financial confidence is found not to track actual financial skills very closely across different ages, especially for women, and at older ages. We also find evidence that financial literacy and decision making are related to the relative education level of spouses. Using the Oaxaca-Blinder decomposition, confidence is also found to explain 14.15% of the gender gap in financial literacy, while being self-employed explains 19% of the gap, and taking part in the financial planning accounts for 16.76% of the gender gap difference. We find that most of the gap remains unexplained by differences in coefficients of men and women.

Keywords: Gender; Financial Literacy; Financial Confidence. (search for similar items in EconPapers)
JEL-codes: G0 H00 I22 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-fle
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://creei.ca/wp-content/uploads/2019/12/cahier_ ... eracy_confidence.pdf

Related works:
Journal Article: Canadian Gender Gap in Financial Literacy: Confidence Matters (2020)
Working Paper: Canadian Gender Gap in Financial Literacy: Confidence Matters (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rsi:creeic:1905

Access Statistics for this paper

More papers in Cahiers de recherche / Working Papers from Chaire de recherche sur les enjeux économiques intergénérationnels / Research Chair in Intergenerational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Lee Boyle ().