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Marriage and other risky assets: A portfolio approach

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  • Bertocchi, Graziella
  • Brunetti, Marianna
  • Torricelli, Costanza

Abstract

We study the joint impact of gender and marital status on financial investments by testing the hypothesis that marriage represents - in a portfolio framework - a sort of safe asset and that this attribute may change over time. We show that married individuals have a higher propensity to invest in risky assets than single ones, that this marital status gap is stronger for women and that, for women only, it evolves and declines at the end of the sample period. Next we explore a number of possible explanations of the observed gender differences by controlling for background factors that capture the evolution of family and society. We find that both the higher female marital status gap and its time variability vanish for those women who are employed. Our empirical investigation is based on a dataset drawn from the 1993-2006 Bank of Italy Survey of Household Income and Wealth.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 35 (2011)
Issue (Month): 11 (November)
Pages: 2902-2915

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Handle: RePEc:eee:jbfina:v:35:y:2011:i:11:p:2902-2915

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Keywords: Household portfolios Risky investments Marriage Divorce Labor force participation;

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References

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Citations

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Cited by:
  1. Bertocchi, Graziella & Brunetti, Marianna & Torricelli, Costanza, 2012. "Is It Money or Brains? The Determinants of Intra-Family Decision Power," IZA Discussion Papers 6648, Institute for the Study of Labor (IZA).
  2. Ganguli, Ina & Hausmann, Ricardo & Viarengo, Martina, 2010. "“Schooling Can’t Buy Me Loveâ€: Marriage, Work, and the Gender Education Gap in Latin America," Scholarly Articles 4448873, Harvard Kennedy School of Government.
  3. Giarda, Elena, 2013. "Persistency of financial distress amongst Italian households: Evidence from dynamic models for binary panel data," Journal of Banking & Finance, Elsevier, vol. 37(9), pages 3425-3434.
  4. Vincenzo Atella & Marianna Brunetti & Nicole Maestas, 2011. "Household Portfolio Choices, Health status and Health Care Systems A Cross-Country Analysis Based on SHARE," CEIS Research Paper 183, Tor Vergata University, CEIS, revised 21 Jan 2011.
  5. Siobhan Austen & Rachel Ong & Sherry Bawa & Therese Jefferson, 2013. "Trends in the Gender Wealth Gap Among Single Households in Australia, 2002-2010," Bankwest Curtin Economics Centre Working Paper series WP1308, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.

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