Understanding the gender gap in financial literacy: the role of culture

Preston, A., Qiu, L. and Wright, R. E. (2023) Understanding the gender gap in financial literacy: the role of culture. Journal of Consumer Affairs, (doi: 10.1111/joca.12517) (Early Online Publication)

Abstract

Using data from the 2015 China Household Financial Survey (CHFS) this paper examines the effect of culture on the gender gap in financial literacy. We exploit geographical differences in culture in China, comparing outcomes between rural and urban areas and between areas in the east and west (Shanghai and Chongqing). Using the Blinder-Oaxaca decomposition we show that, nationally, the gender gap in financial literacy is entirely the product of differences in the way men and women acquire financial literacy. It is a result consistent with cultural effects. When considering just women in Shanghai and Chongqing we observe a raw financial literacy differential of 13% (favoring Shanghai). This gap is also the product of differences in the way financial literacy is acquired. It provides additional evidence as to the importance of culture when it comes to understanding financial literacy.

• Item Type: Articles
• Keywords: China, culture, financial literacy, gender equality, gender gap, Oaxaca‐Blinder decomposition.
• Status: Early Online Publication
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Wright, Dr Robert
• Authors: Preston, A., Qiu, L., and Wright, R. E.
• College/School: College of Social Sciences > Adam Smith Business School; College of Social Sciences > School of Education
• Journal Name: Journal of Consumer Affairs
• Publisher: Wiley
• ISSN: 0022-0078
• ISSN (Online): 1745-6606
• Published Online: 02 March 2023
• Copyright Holders: Copyright © 2023 The Authors
• First Published: First published in Journal of Consumer Affairs 2023
• Publisher Policy: Reproduced under a Creative Commons License