Why Men Get Richer Faster Than Women
Research has shown that men are more likely to accumulate wealth quicker than women. Here are some of the internal and external factors that contribute to this gender wealth gap:
Internal Factors:
- Gender pay gap: Women still earn less than men on average for the same jobs, which means they have less money to save and invest. The report by Forbes and World Economic Forum discusses this in depth.
- Lack of negotiation skills: Women may be less likely to negotiate for higher salaries or better benefits, which further perpetuates the gender pay gap.
- Occupational segregation: Women are more likely to work in lower-paying jobs or industries, which makes it harder for them to accumulate wealth.
- Career interruptions: Women are more likely to take time off from their careers to care for children or other family members, which can result in lower lifetime earnings and less wealth accumulation.
- Risk aversion: Women may be more risk-averse when it comes to investing, which can lead to less aggressive investment strategies and potentially lower returns. Investopedia defines risk aversion as “a tendency to avoid risk and have a low risk tolerance.”
External Factors:
- Patriarchal society: In many cultures, men are still seen as the primary breadwinners and decision-makers when it comes to finances, which can result in women being excluded from important financial decisions.
- Lack of access to funding: Women may have a harder time obtaining loans or venture capital for businesses or other ventures, which can limit their ability to accumulate wealth.
- Societal expectations: Women may face pressure to prioritize family and caregiving over career and wealth accumulation.
- Unequal division of household labor: Women still perform more unpaid household labor than men, which can make it harder for them to devote time and energy to wealth accumulation.
There are many other factors that contribute to the gender wealth gap, and it’s important to note that individual circumstances can vary widely. However, these factors highlight some of the structural barriers that women face in their pursuit of wealth accumulation.
To find out how women can overcome the barriers in their pursuit of wealth, click here.
Why Men Get Richer Faster Than Women
Research has shown that men are more likely to accumulate wealth quicker than women. Here are some of the internal and external factors that contribute to this gender wealth gap:
Internal Factors:
External Factors:
There are many other factors that contribute to the gender wealth gap, and it’s important to note that individual circumstances can vary widely. However, these factors highlight some of the structural barriers that women face in their pursuit of wealth accumulation.
To find out how women can overcome the barriers in their pursuit of wealth, click here.