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Are Women Really More Risk-Averse than Men?

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  • Julie A. Nelson

Abstract

While a substantial literature in economics and finance has concluded that women are more risk averse than men, this conclusion merits reconsideration. Drawing on literatures in statistics and cognitive science, this essay discusses the important difference between drawing conclusions based on statistical inference, which concerns aggregates such as mean scores, and generalization, which posits characteristics of individuals classified into kinds. To supplement findings of statistical significance, quantitative measures of substantive difference (Cohen's d) and overlap (the Index of Similarity) are computed from the data on men, women, and risk used in 28 published articles. The results are considerably more mixed and overlapping than might be expected. Paying attention to empirical evidence that challenges subjective cultural beliefs about sex and risk has implications for labor economics, finance, and the economics of climate change.

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  • Julie A. Nelson, 2012. "Are Women Really More Risk-Averse than Men?," GDAE Working Papers 12-05, GDAE, Tufts University.
    • Handle: RePEc:dae:daepap:12-05
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    Cited by:

    1. Filippin, Antonio & Crosetto, Paolo, 2014. "A Reconsideration of Gender Differences in Risk Attitudes," IZA Discussion Papers 8184, Institute of Labor Economics (IZA).
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    3. Michail Chouzouris & Panos Xenos & Platon Tinios, 2022. "Becoming ‘Homo Economicus’ as Learned Behavior among Numerate Greek University Students," Social Sciences, MDPI, vol. 11(5), pages 1-18, April.
    4. Schneebaum, Alyssa & Rehm, Miriam & Mader, Katharina & Klopf, Patricia & Hollan, Katarina, 2014. "The Gender Wealth Gap in Europe," Department of Economics Working Paper Series 186, WU Vienna University of Economics and Business.
    5. San Vicente Portes, Luis & Atal, Vidya & Juárez Torres, Miriam, 2019. "From households to national statistics: Macroeconomic effects of Women's empowerment," Economic Modelling, Elsevier, vol. 79(C), pages 286-294.
    6. Julie A. Nelson, 2011. "Would Women Leaders Have Prevented the Global Financial Crisis? Implications for Teaching about Gender, Behavior, and Economics," GDAE Working Papers 11-03, GDAE, Tufts University.
    7. repec:cup:judgdm:v:9:y:2014:i:6:p:558-571 is not listed on IDEAS
    8. Nelson, Julie A., 2012. "Is Dismissing the Precautionary Principle the Manly Thing to Do? Gender and the Economics of Climate Change," Working Papers 179102, Tufts University, Global Development and Environment Institute.
    9. Julie A. Nelson, 2012. "Are Women Really More Risk-Averse than Men?," GDAE Working Papers 12-05, GDAE, Tufts University.
    10. Alice Wieland & James Sundali & Markus Kemmelmeier & Rakesh Sarin, 2014. "Gender differences in the endowment effect: Women pay less, but won't accept less," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(6), pages 558-571, November.
    11. Maria Giuseppina Bruna & Rey Dang & Marie-José Scotto & Aymen Ammari, 2019. "Does board gender diversity affect firm risk-taking? Evidence from the French stock market," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(4), pages 915-938, December.
    12. Ibrahim Emair Albawwat & Mohammad Nawaf Al harasees, 2019. "Gender Attributes of Audit Committee Members and the Quality of Financial Reports," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(3), pages 24-37, July.
    13. Irene Comeig & Charles A. Holt & Ainhoa Jaramillo-Gutiérrez, 2015. "Dealing with risk: Gender, stakes, and probability effects," Discussion Papers in Economic Behaviour 0215, University of Valencia, ERI-CES.
    14. Pauline Cullen & Mary P. Murphy, 2018. "Leading the debate for the business case for gender equality, perilous for whom?," Gender, Work and Organization, Wiley Blackwell, vol. 25(2), pages 110-126, March.
    15. San Vicente Portes Luis & Atal Vidya & Juárez-Torres Miriam, 2019. "Women's Empowerment: Aggregate Effects on Savings and Wealth," Working Papers 2019-21, Banco de México.
    16. Ariane Agunsoye & Jerome Monne & Janette Rutterford & Dimitris P. Sotiropoulos, 2022. "How gender, marital status, and gender norms affect savings goals," Kyklos, Wiley Blackwell, vol. 75(2), pages 157-183, May.

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