The gender gap in over-indebtedness

Meyll, Tobias; Pauls, Thomas

doi:10.1016/j.frl.2018.12.007

Cited by 34 publications

(14 citation statements)

References 19 publications

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“…A negative significant sign in all equations in Table 3 near the gender variable indicates that being male reduces the scale of overindebtedness and possible overindebtedness as a result of the pandemic. These results are opposite to those obtained by, inter alia, Meyll and Pauls (2019) or Goode (2012) who show that women are less likely to become overindebted compared to men. However, studies that analyze the type of debt (e.g., Sandvall 2011) show that in the case of credit products (e.g., credit cards), women are more affected by debt settlement problems.…”

Section: Resultscontrasting

confidence: 98%

Household’s Overindebtedness during the COVID-19 Crisis: The Role of Debt and Financial Literacy

Kurowski

2021

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The COVID-19 pandemic has shown how important it is to prepare one’s own financial budget for the unexpected loss of income. In this dimension, the financial education of the society plays an invaluable role. It allows us to account for events that may adversely affect personal finances in our budget management decisions. Therefore, the aim of the article is to check whether households with a higher level of financial and debt literacy have better management skills from the perspective of a household’s budget, which in the face of a crisis reduces the risk of individuals not paying their liabilities. Thus, at the turn of June and July 2020, we conducted surveys among 1300 Polish citizens. Using the multinomial logistic regression, we show that people with a higher financial and debt literacy are less affected by overindebtedness. During the crisis, people who have a higher debt literacy are better prepared to manage credit liabilities; in this situation, financial literacy is less important. In addition, the type of credit experience turned out to be significant. Respondents who have experience with consumer loans (potentially high-margin products) are more likely to have debt repayment problems than those with mortgage loans experiences.

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Section: Resultscontrasting

confidence: 98%

Household’s Overindebtedness during the COVID-19 Crisis: The Role of Debt and Financial Literacy

Kurowski

2021

Risks

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“…One study found that women were less likely to develop excessive debt even after controlling for risk attitude, financial literacy and socio-demographic characteristics [30]. This is not what we found in the GPs' patient population, where women were better represented than men.…”

Section: Discussioncontrasting

confidence: 93%

Should GPs ask patients about their financial concerns? Exploration through collaborative research

Ose

Kaspersen

et al. 2020

Scandinavian Journal of Primary Health Care

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Objective: Health services should arguably be concerned about the financial situation of patients since health problems can cause financial concerns, which in turn can cause health problems. In this study, we explored the role of the general practitioner (GP) as a potential early discoverer of financial problems who can refer at-risk patients to financial counselling services. Design: A collaborative health service research experiment. For four weeks, GPs asked their patients predefined questions about financial concerns and health, by anonymous data mapping. GPs shared their experiences with the researchers after the experiment. Setting: One GP office in Norway. Subjects: A total of 565 patients were included in data mapping by 8 GPs. Main outcome measures: Patient prevalence data and GPs experimental data of patients' health problems that caused financial concerns and financial concerns that affected patients' health. Results: Of 565 GP patients, 11% (n ¼ 63) indicated that they had health problems causing them financial concerns, or vice versa; 9% of patients reported health problems causing financial concerns and 8% of patients reported financial concerns that affected their health. Through the data mapping experiment GPs became aware of financial concerns of their patients and by this expanded and improved their therapeutic toolbox. Several months after the experiment the GPs reported that more patients received financial counselling since the GPs asked their patients about financial problems more often than before and because the patients had heard that GPs cared about such problems. Conclusion: Our results suggest that GPs can be early discoverers of financial problems interacting with their patients' health. When there are no clear medical explanations for the health problems that prompted the consultation, the best therapy may thus be financial counselling. KEY POINTS Many people live on the edge of financial ruin and struggle to keep track of their finances, but limited research exists that investigates associations between finance and health. In a collaborative health services research experiment 11% of the patients at a Norwegian GP office had health problems that caused them financial concerns, or vice versa. GPs found it helpful to ask patients about their financial concerns when no clear medical explanations for their health problems was found. Then free financial counselling services could be offered.

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“…Using data collected in Singapore, Agarwal et al (2018) established that being involved in bankruptcy events is less likely among women by 28% compared to men and that this sizable gender difference can be mainly explained by risk-taking behaviour. Meyll and Pauls (2019), in turn, found out that over-indebtedness is less likely among women compared to their male peers and that this gender gap cannot be explained by risk attitude or financial literacy: they indicate the initial loan purpose as the factor at play here. Based on the data obtained from a Chinese peer-to-peer lending platform, X. Chen, Huang, and Ye (2019) report better borrowing outcomes on the part of women.…”

Section: Empirical Findings On the Gender Gap In Financial Behaviourmentioning

confidence: 88%

Do Women Behave Financially Worse than Men? Evidence from Married and Cohabiting Couples

Cwynar¹

2021

CEBR

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Extensive empirical evidence shows that women perform worse in financial literacy tests, which implies that their financial behaviour may also be worse compared to men. However, the literature on the gender gap in financial behaviour is scanty and highly inconclusive. Using data from a survey of married and cohabiting couples living in Poland (N=1,000) and a multi-dimensional scale validated in terms of its psychometric properties, this article compares the financial behaviour of women and men. The applied tests did not show any significant gender differences in the overall financial behaviour index or in any of the subdomains of the behaviour distinguished in the applied scale. Using the social identity theory as a framework, we discuss possible explanations of these puzzling findings, which may imply that women are unnecessarily considered a disadvantaged group in terms of preparedness to participate in financial life, including the business sphere. Implications for Central European audience: Assuming that the gender differences in financial literacy and behaviour can be explained on the grounds of the social identity theory, Central and Eastern Europe may differ from Western Europe in terms of the gender gap. Socially-imposed gender roles were presumably shaped differently behind the Iron Curtain, which resulted in that the distinction between masculine and feminine roles got blurred under the Soviet regime. As a result, the absence of gender differences in financial behaviour is more likely to occur in Central and Eastern European countries. Financial education initiatives should take this circumstance into account.

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The gender gap in over-indebtedness

Cited by 34 publications

References 19 publications

Household’s Overindebtedness during the COVID-19 Crisis: The Role of Debt and Financial Literacy

Household’s Overindebtedness during the COVID-19 Crisis: The Role of Debt and Financial Literacy

Should GPs ask patients about their financial concerns? Exploration through collaborative research

Do Women Behave Financially Worse than Men? Evidence from Married and Cohabiting Couples

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