Women are less financially literate than men. It is unclear whether this gap reflects a lack of knowledge or, rather, a lack of confidence. Our survey experiment shows that women tend to disproportionately respond “do not know” to questions measuring financial knowledge, but when this response option is unavailable, they often choose the correct answer.
We estimate a latent class model and predict the probability that respondents truly know the correct answers. We find that about one-third of the financial literacy gender gap can be explained by women’s lower confidence levels. Both financial knowledge and confidence explain stock market participation.
Full content of the publication
G53, C81, D91
Financial Anxiety and Stress among U.S. Households: New Evidence from the National Financial Capability Study and Focus Groups
The economic impact of the COVID-19 crisis has brought to light the deeply rooted financial struggles that many American...Read more
2020 Impact Report Center for Financial Education BBVA USA
BBVA’s Center for Financial Education creates opportunities for individuals and communities to improve their financial...Read more
Impact of new technologies on financial inclusion
Advances in new technologies give millions of people who experience financial exclusion globally the opportunity to acce...Read more