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Gender differentiation in risk-taking behavior: On the relative risk aversion of single men and single women

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  • Stark, Oded
  • Zawojska, Ewa

Abstract

We relate an observed difference between single men (SM) and single women (SW) in attitudes towards risk to the higher value assigned to social status by SM than by SW. In the marriage market, low status carries a harsher penalty for SM than for SW because when selecting a partner, the social status of a man is more important to a woman than the social status of a woman is to a man. Correlating social status with relative wealth, we show how intensified distaste at experiencing low relative wealth reduces relative risk aversion.

Suggested Citation

  • Stark, Oded & Zawojska, Ewa, 2015. "Gender differentiation in risk-taking behavior: On the relative risk aversion of single men and single women," University of Tübingen Working Papers in Business and Economics 88, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    • Handle: RePEc:zbw:tuewef:88
    DOI: 10.15496/publikation-7705
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    Cited by:

    1. Sakketa, T.G., 2018. "Relative Deprivation in Income, Assets, and Social Capital: Motivational and Deterrent Impacts on the Well-Being of Rural Youth," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277116, International Association of Agricultural Economists.
    2. Stark, Oded & Jakubek, Marcin, 2020. "A methodological rejoinder to "Does income relate to health due to psychosocial or material factors?"," Social Science & Medicine, Elsevier, vol. 259(C).
    3. Stark, Oded & Budzinski, Wiktor & Jakubek, Marcin, 2022. "Risk aversion when preferences are altruistic," Economics Letters, Elsevier, vol. 216(C).
    4. José Javier Bercoff & Osvaldo Meloni, 2023. "Looking inside the ballot box: gender gaps in Argentine presidential elections," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 70(2), pages 237-255, June.
    5. Sakketa Tekalign Gutu & Gerber Nicolas, 2018. "Working Paper 296 - Relative Deprivation and Well-Being of the Rural Youth," Working Paper Series 2423, African Development Bank.
    6. Oded Stark, 2019. "On Social Preferences and the Intensity of Risk Aversion," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 86(3), pages 807-826, September.
    7. Moudrý, Dann Vít & Thaichon, Park, 2020. "Enrichment for retail businesses: How female entrepreneurs and masculine traits enhance business success," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    8. Shamsuddin, Mrittika & Katsaiti, Marina Selini & El Anshasy, Amany A., 2022. "Income rank and income concerns: What correlates with international migration intentions?," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 490-505.
    9. Omotuyole Isiaka Ambali & Francisco Jose Areal & Nikolaos Georgantzis, 2021. "On Spatially Dependent Risk Preferences: The Case of Nigerian Farmers," Sustainability, MDPI, vol. 13(11), pages 1-16, May.

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    More about this item

    Keywords

    Risk-taking behavior; Gender-based difference in risk aversion; Relative wealth deprivation; Social status; Marriage market outcome;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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