Faculty of Economics and Business Administration Publications Database

The gender gap in over-indebtedness

Meyll, Tobias
Pauls, Thomas
Volume: 31
ISSN-Print: 1544-6123
Link External Source: Online Version
Year: 2019
Keywords: Gender; Over-indebtedness; Loan purpose; Financial literacy; Gender gap; Consumer debt

We document a significant gender gap in over-indebtedness, as we find women to be less likely to become over-indebted even after controlling for risk attitude, financial literacy and socio-demographic characteristics. However, once we account for loan purposes the gender gap diminishes. Our findings highlight the importance to account for loan purposes when analyzing individuals’ debt behavior.