Abstract
This paper provides empirical evidence of gender disparities in parental savings within a government-sponsored program in Israel, showing that parents allocate more resources to children perceived as future breadwinners. Using detailed administrative data, we exploit differences between Haredi (Ultra-Orthodox Jewish) and Arab populations, which share patriarchal gender norms but face distinct economic incentives regarding the future prospects of girls and boys. Haredi parents, whose daughters are more likely to pursue academic education and participate in the labor force, tend to save more for girls, whereas Arab parents, whose sons are typically the primary earners, save more for boys. Additional administrative and survey data suggest that these patterns appear to be driven by economic incentives rather than patriarchal gender preferences. The findings reveal inequalities in parental savings within designated child savings programs, and the factors driving the inequalities, offering insights to inform policies on program design.
Keywords: Gender bias; culture; savings.
JEL Codes: D14; J16; G51.