Gender differences in financial performance: new empirical evidence

ABSTRACT

This article provides new empirical evidence on gender differences in self-reported and observed financial performance. Using a quasi-experimental framework, comparing people who live in a matrilineal and a patrilineal environment in India, the results show that no significant gender differences in observed and self-reported performance exist among respondents who belong to the matrilineal culture. In contrast, women who live in a patrilineal environment self-report more often than men that they are not dealing well with economic and financial problems. However, no significant gender differences in observed financial performance are found.

KEYWORDS:

• Gender
• financial performance
• matrilineal and patriarchal culture

JEL CLASSIFICATION:

• D14
• D83
• J16

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

¹ The card order was always organized in the same way for each respondent.

² The respondent was asked what the outcome of 3 + 2 is. The variable takes on the value one if the result is correct and zero otherwise.

³ This variable is measured by the question: Suppose you are asked to toss a ball into a bin 10 feet away. You will have 10 opportunities to toss the ball. How many successful tosses do you think you will make? If the respondent says that he or she will make more than 5 tosses, the variable takes on the value one and zero if the respondent says that he or she might need less.

⁴ Short preferences are measured by asking: Suppose you have the option to receive 100 rupees today or 150 rupees three days later. It is sure that you will get the money. What would be your choice? The variable takes on the value one if the respondent decides for the first option and zero for the second option.