Page 108 - IJPS-11-2

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

A B

Figure 1. Kernel density plots before and after matching (nearest neighbor caliper one-to-two matching). (A) Sample before matching. (B) Sample after
matching.

significant difference in the probability of savings between assessment results, potentially influenced by individual
female-headed and male-headed households. perceptions of financial balance.
In summary, the results of the three matching methods Second, female household heads tend to purchase
consistently indicate that, among the four variables used commercial insurance to manage household risks, reflecting
to measure household financial health, female-headed a stronger inclination toward risk protection compared
households outperform male-headed households in three to men. Studies on gender differences in risk aversion
variables, except for the savings account variable. Therefore, yielded mixed results, with some research indicating
all hypotheses except for hypothesis 3 (H3) are supported significant differences (Arano et al., 2010; Cupples et al.,
by the data, suggesting that female-headed households 2013; Cornwall et al., 2018; Croson & Gneezy, 2009), while
generally exhibit better financial health compared to male- others suggesting minimal or no differences, depending on
headed households. factors such as income (Fisher & Yao, 2017; Owusu et al.,
4. Discussion 2023), education (Cupples et al., 2013; Owusu et al., 2023;
Yao et al., 2011), age (Owusu et al., 2023), racial and ethnic
Based on the results of the above data analysis, after background (Yao et al., 2005), and the specific types of
controlling for variables such as age, occupation, education risks being assessed (Weber & Millman, 1997; Harris et al.,
attainment, city of residence, rural residence, total annual 2006). Men and women have different attitudes toward
household income, and financial literacy, female-headed certain types of risks. Research shows that women are
households demonstrate healthier finances compared to more sensitive to risks with severe negative consequences
male-headed households. and thus less willing to engage in risky behaviors (Weber
First, female-headed households display better & Millman, 1997). However, when there is a small chance
financial balance, reflecting greater stability and of a large benefit for a fixed small cost, women are more
sustainability in financial performance. This suggests that, likely to take the risk (Harris et al., 2006). This aligns with
after controlling for demographic and socioeconomic our findings that female household heads are more likely to
characteristics, women might have more effective mitigate risks by purchasing commercial insurance, leading
financial management skills in handling daily expenses to significant positive outcomes at relatively low costs. This
and savings compared to men. However, it is essential behavior suggests a cautious approach to risk management,
to consider that the self-reported nature of income where the focus is on avoiding potential losses rather than
and expenditure balance could introduce bias into the seeking gains. By prioritizing financial protection, these

Volume 11 Issue 2 (2025) 102 https://doi.org/10.36922/ijps.4403