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Risk Attitudes and Investment Decisions across European Countries: Are Women More Conservative Investors than Men?

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  • Oleg Badunenko
  • Nataliya Barasinska
  • Dorothea Schäfer

Abstract

This study questions the popular stereotype that women are more risk averse than men in their financial investment decisions. The analysis is based on micro-level data from large-scale surveys of private households in five European countries. In our analysis of investment decisions, we directly account for individuals' self-perceived willingness to take financial risks. The empirical evidence we provide only weakly supports the gender differences argument. We find that women are less likely to invest in risky financial assets. However, when the probability of investing is controlled for, males and females are found to allocate equal shares of their wealth to risky assets.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.341838.de/dp928.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 928.

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Length: 43 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwwpp:dp928

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Keywords: Gender; risk aversion; financial behavior;

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