Understanding the gender gap in financial literacy: evidence from Australia

Preston, A. C. and Wright, R. E. (2019) Understanding the gender gap in financial literacy: evidence from Australia. Economic Record, 95(S1), pp. 1-29. (doi: 10.1111/1475-4932.12472)

Abstract

Using micro‐data from the Household, Income and Labour Dynamics in Australia Survey, and the Oaxaca–Blinder decomposition technique, this paper examines the determinants of the gender gap in financial literacy. The analysis suggests that human capital variables, such as age and education, are not important in explaining the gender gap in financial literacy. Labour market variables, such as sector, occupation, industry, union membership and labour market status, are important and explain around 16 per cent of the gap. This finding is dependent on the assumption that these variables are exogenous. There is a large unexplained gap, suggesting that the main determinants are neither human capital nor labour market factors.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Wright, Dr Robert
• Authors: Preston, A. C., and Wright, R. E.
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Journal Name: Economic Record
• Publisher: Wiley
• ISSN: 0013-0249
• ISSN (Online): 1475-4932
• Published Online: 23 April 2019
• Copyright Holders: Copyright © 2019 Economic Society of Australia
• First Published: First published in Economic Record 95(S1):1-29
• Publisher Policy: Reproduced in accordance with the copyright policy of the publisher