Comparing Financial Outcomes Among Households Headed by Women, Men, or Both Partners: The Gender Pay Gap Prevails

Abstract

Research shows gender disparities in savings habits and financial literacy. However, recent studies indicate that the higher earner in a household, regardless of gender, typically manages finances more effectively. This study examines if households where women are the primary decision-makers face more financial challenges and if they have less financial resilience, knowledge, and capability due to lower household income. Using data from the Canadian Financial Capability Survey (n = 2,149), we employ regression analysis to analyze differences in financial circumstances among households headed by women, men, and both genders jointly. Our findings show that women-led households have lower incomes, struggle to balance expenses, and are less likely to pay off credit card balances compared with households led by men or those with shared responsibility. Disparities in financial resilience, knowledge, and capability lessen when controlling for household income. Addressing the gender pay gap is crucial for improving financial outcomes for women and their households.