This study investigates gender disparities in financial literacy among students in Uganda's Business, Technical, Vocational Education, and Training (BTVET) institutions. Data was collected using a structured questionnaire administered to 400 BTVET students selected from BTVET institutions in the central region of Uganda, employing a stratified random sampling procedure. The primary objectives of this study are to determine the financial literacy levels of BTVET students in Uganda by gender, identify the factors influencing financial literacy among BTVET students by gender, and estimate the gender gap in financial literacy. Descriptive statistics, Ordinary Least Squares (OLS) regression, and Oaxaca-Blinder (O-B) decomposition methods were employed. The study revealed a gender gap in financial literacy levels. While most male and female students demonstrated a moderate level of financial literacy, a high financial literacy level was observed in 29% of male students, nearly twice the proportion of female students (14.76%). The study showed that financial confidence and family background significantly influence male students' financial literacy, while personal financial management skills and parental financial socialization primarily shape female students' financial literacy. The Oaxaca-Blinder decomposition revealed that the gender gap in financial literacy is largely explained by unobserved characteristics which may result from societal expectations and biases. Financial confidence also emerged as a significant unexplained factor, accounting for 22.95% of the financial literacy gap. Given the study findings, targeted efforts to enhance financial confidence among female students and challenge societal norms and biases, such as mentorship programs and school financial literacy competitions, are recommended to close the financial literacy gender gap.
Keywords: Gender gap, Oaxaca-Blinder, Decomposition, BTVET, Financial literacy
Manuscript submitted to Journal of Teaching in International Business | This work was made possible in part by a grant from Carnegie Corporation of New York with Grant number G-20-57628. The statements made and views expressed are solely the responsibility of the authors. We acknowledge the Future Africa, University of Pretoria; and thank the research assistants for providing support during data collection.
