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Financial Risk-Taking and the Gender Wage Gap

Author

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  • Edin, Per-Anders
  • Selin, Håkan

Abstract

Could differences in risk attitudes explain parts of the gender wage gap? We present estimates on the association between labor market outcomes and financial risk-taking using individual level administrative data on individual wealth portfolios and wage rates from year 2000, when high-quality wealth data were available in Sweden. The individual’s share of risky to total financial assets is significantly and positively associated with the wage rate. However, it turns out that our risk measure explains only a small part of the observed gender difference in wages.

Suggested Citation

  • Edin, Per-Anders & Selin, Håkan, 2022. "Financial Risk-Taking and the Gender Wage Gap," Labour Economics, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:labeco:v:75:y:2022:i:c:s0927537122000379
    DOI: 10.1016/j.labeco.2022.102144
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    More about this item

    Keywords

    Wages; human capital; financial risk;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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