On the nexus between Gender, Financial Literacy, and Household Finance

Abstract

This thesis analyzes the relationship between gender and financial literacy of household heads, as well as the composition and returns of their financial portfolios, using data from the Italian Survey on Household Income and Wealth (SHIW). The analysis reveals that male household heads and financially sophisticated investors achieve higher returns, likely due to their more active participation in risky assets. Furthermore, the level of financial literacy matters more for male household heads than female household heads. Importantly, female heads (with a similar level of financial sophistication as male heads) earn similar returns by investing in other risky assets, such as bonds and mutual funds, rather than equity, even if they create more prudent investment portfolios than their male counterparts. Keywords: Household Finance, Gender, Financial Literacy, Portfolio Choice