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Ethnicity and risk: a field test of the white-male effect

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  • Shahar Sansani

Abstract

In this article, I analyse the different risk-taking tendencies of students comprising the two major ethnic groups in Israel, Ashkenazi and Mizrahi Jews, in a field setting. I determine ethnicity by students’ last names, and I measure risk by students’ propensity to give up a passing grade on a final exam in order to be able to retake the exam in pursuit of a higher grade, but with the risk of earning a lower grade and possibly not passing the course. Differences in preferences for risk may be part of the explanation for differential labour market outcomes between gender and ethnic groups. I find evidence that Ashkenazi men take more exam risk than both Ashkenazi and Mizrahi women, and Mizrahi men. This finding is consistent with the ‘White-Male Effect’, the notion that white males, or males from the dominant socio-economic group, perceive lower risks than females and non-whites.

Suggested Citation

  • Shahar Sansani, 2018. "Ethnicity and risk: a field test of the white-male effect," Applied Economics Letters, Taylor & Francis Journals, vol. 25(2), pages 74-77, January.
  • Handle: RePEc:taf:apeclt:v:25:y:2018:i:2:p:74-77
    DOI: 10.1080/13504851.2017.1296540
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    Cited by:

    1. Sansani, Shahar, 2017. "Are the Religiously Observant Discriminated Against in the Rental Housing Market? Experimental Evidence from Israel," MPRA Paper 81424, University Library of Munich, Germany.
    2. Gil S. Epstein & Shahar Sansani, 2020. "Immigrant examination behavior," Education Economics, Taylor & Francis Journals, vol. 28(2), pages 136-155, March.
    3. Harjoto, Maretno A. & Laksmana, Indrarini & Yang, Ya-wen, 2018. "Board diversity and corporate investment oversight," Journal of Business Research, Elsevier, vol. 90(C), pages 40-47.

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