Page 102 - IJPS-11-2

International Journal of
Population Studies Do female-headed households have poorer finances?

that allow them to enjoy life. It is intertwined with both imply poorer financial health. However, is this really the
physical and mental well-being (Arber et al., 2014; Bethune, case? The “Lehman Sisters Hypothesis” suggests that
2015; Braveman et al., 2018; Chou et al., 2016; Cutts et al., increasing the number of women in executive positions
2011), constituting a measurable social determinant of in financial institutions might promote more prudent
health. The stress caused by financial difficulties can decision-making and risk management, potentially
profoundly impact human health and overall quality of life mitigating the impact of financial crises and enhancing
(Bethune, 2015; Center for Financial Services Innovation, institution’s financial health (Staveren, 2014). In addition,
2015; Kawachi & Kennedy, 1999; Weida et al., 2020). several studies have found that women generally
In both practical and academic contexts, it is widely outperform men in the financial sector (Hollingdale,
recognized that women often experience poorer financial 2020). Other research indicates that while women may
health compared to men (Albanesi & Olivetti, 2009; face fewer financing opportunities than men (Marques,
American Bankers Association et al., 2022; Blau & Kahn, 2015), gender-diverse board can foster sustainable
2017; Chang, 2010). Research suggests that although corporate practices (Valls Martínez et al., 2020).
women generally have longer life expectancies, they tend to Moreover, studies have revealed that while women
accumulate less work experience and earn lower incomes generally score lower on financial literacy assessments
(Gubbay & McKay, 2024; Johnson et al., 2023), which compared to men, it is not always clear whether this is due
diminish their retirement or survivor benefits. These factors to a genuine lack of knowledge or a lack of confidence. For
collectively heighten the financial risks faced by women instance, studies show that women are more likely to select
(Blau & Kahn, 2017; Diane et al., 2016; Dickler, 2023). the “do not know” option in financial knowledge tests,
but when this option is removed, their correct responses
Moreover, women generally display lower levels of
financial literacy compared to men. For instance, the 2015 increase. In addition, evidence suggests that gender
differences in risk aversion are often minimal or non-
U.S. National Financial Capability Study showed men existent when financial decision scenarios are carefully
scoring 7.8 – 8% higher than women in objective financial controlled. These findings imply that perceived gender
literacy tests (Al-Bahrani et al., 2019). Similarly, studies in differences in risk attitudes may be more attributable to
the U.S. highlight significant gender disparities in financial decision framing and societal stereotypes rather than
literacy among older adults, with women showing a inherent differences between men and women (Charness
substantial gap in financial sophistication (Bucher-Koenen & Gneezy, 2012; Frydman & Camerer, 2023; Niederle &
et al., 2017; Fonseca et al., 2012). Empirical research across Vesterlund, 2007; Schubert et al., 1999; Yusof, 2015).
developed and developing nations has consistently shown
that women have less knowledge about complex financial Existing research has examined gender differences
and investment concepts such as numeracy, compound in income, investment behavior, and risk attitudes, but
interest, inflation, asset pricing, and risk diversification studies on gender disparities in household financial
(Bottazzi & Lusardi, 2016; Hasler & Lusardi, 2017). health remain relatively scarce. Financial health not
only extends beyond income and investments, but it
In addition, evidence suggests that women face more
barriers to accessing financial resources and services also includes aspects such as financial management,
levels of debt, savings, and the availability of emergency
compared to men (American Bankers Association et al., 2022; funds (Consumer Financial Protection Bureau, 2017;
Govindapuram et al., 2022; Kairiza et al., 2017; Muravyev Center for Financial Services Innovation, 2015). Due
et al., 2009; Staveren, 2001). Utilizing data from the Global to more conservative financial behaviors, women may
Findex database across multiple survey rounds, Morsy (2020) perform better in certain aspects such as savings and debt
revealed significant gender gaps in banking service utilization management (Durmaz et al., 2023; Hira & Loibl, 2008;
across various countries and income brackets. Moreover, Lusardi & Mitchell, 2014). However, many studies fail to
existing literature highlights gender-based financial comprehensively analyze how these differences impact the
constraints and inequalities at both micro and macro levels, overall financial health between genders. To address this
including disparities in household savings and investment gap, this study uses nationwide data from China to delve
(Almenberg & Dreber, 2012; Itzkowitz et al., 2023; Were et al., deeper into the gender disparities in household financial
2021), and the reluctance of financial institutions to address health. China’s rapid economic development, complex
women’s financial needs (Morsy, 2020). gender norms, and evolving financial landscape make it a

Financial literacy and access are crucial determinants of representative and scientifically valuable case for analysis.
financial health (Lusardi & Mitchell, 2014; Sahay et al., 2021). Moreover, China’s comprehensive data on financial health
Compared to men, women typically face disadvantages in provide an opportunity for a systematic examination of the
financial literacy, access, and opportunities, which could relationship between gender and financial health.

Volume 11 Issue 2 (2025) 96 https://doi.org/10.36922/ijps.4403