Investing in stocks is no longer a game played only by the wealthy. Equity investments have become an important part of household finances for many middle-class households, too.
But stock market participation varies widely from country to country, and that variation may have something to do with cultural attitudes about gender, according to a paper in AEA Papers and Proceedings.
Researcher Da Ke, of the University of South Carolina, says that countries with more traditional gender norms tend to have lower levels of household investment in the stock market. These traditional attitudes constrain women’s influence over household financial decisions, even if they are more financially sophisticated, Ke says.
Figure 1 from Ke (2018)