Follow us, not? Gender differences in financial literacy within the global leader of gender equality

Abstract

Gender differences in financial literacy are examined in this research. A considerable body of research suggests women are inferior to men when it comes to financial literacy. Various social factors (e.g., gender inequality) are typically attributed as antecedents of this reality. We set out to investigate whether gender differences in financial literacy are present in Iceland, the most gender-equal country in the world. If financial literacy is based on social norms and issues, gender differences in financial literacy should be less in countries like Iceland, where women are highly economically and otherwise empowered. Using a representative sample from the Icelandic population and controlling for a host of factors, we find women to be less financially literate than men despite substantial gender equality in Iceland.