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Gender and Risk Taking in the Classroom

Author

Listed:
  • Justine Burns

    (School of Economics, University of Cape Town)

  • Simon Halliday
  • Malcolm Keswell

Abstract

We examine whether differences in risk preferences explain gender differentials in test scores amongst a large class of undergraduate microeconomics students, where students were evaluated using multiple choice questions. In each of five class tests, the negative penalty associated with an incorrect answer was randomly varied across questions. We show that female students exhibit lower risk propensities on average, and that they are more responsive than males to an increase in the penalty for an incorrect answer. Controlling for di erences in risk preferences, we show that the gender differential in relation to answering any given question correctly reduces by a third, and that the gender differential in overall test scores becomes statistically insigni cant. This result is robust to a variety of distributional assumptions.

Suggested Citation

  • Justine Burns & Simon Halliday & Malcolm Keswell, 2012. "Gender and Risk Taking in the Classroom," SALDRU Working Papers 87, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:wpaper:87
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    File URL: http://opensaldru.uct.ac.za/bitstream/handle/11090/178/2012_87.pdf?sequence=1
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    References listed on IDEAS

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    Cited by:

    1. Riener, Gerhard & Wagner, Valentin, 2017. "Shying away from demanding tasks? Experimental evidence on gender differences in answering multiple-choice questions," Economics of Education Review, Elsevier, vol. 59(C), pages 43-62.
    2. Katherine Baldiga, 2014. "Gender Differences in Willingness to Guess," Management Science, INFORMS, vol. 60(2), pages 434-448, February.

    More about this item

    Keywords

    Experimental Economics; Risk Aversion; Economics Education;

    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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