Gender and financial literacy in Ghana

Purpose: This study examines the gender gap in financial literacy in Ghana. Design/methodology/approach: This study employs primary data and probit models together with the Oaxaca-Blinder decomposition strategy. Findings: The authors found that males are generally more financially literate than females are. The results also show that much of the gender gap in financial literacy is explained by differences in coefficients or how literacy is produced and not by differences in the demographic and socio-economic characteristics of men and women. Thus, the gap may be attributable to unobserved behavioural and psychological traits, as well as cultural and social norms regarding gender roles in financial decision-making. Practical implications: It is evident that further action is needed to bridge the gap between men and women with regards to financial literacy. Effective interventions may include improving women's access to financial information and education, as well as encouraging their participation in household financial decision-making and planning. In particular, less educated women need to be targeted by policy initiatives in this regard. Originality/value: This study contributes to the scant literature on gender gap in financial literacy in developing countries.