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Are Women Blamed More for Giving Incorrect Financial Advice?

Author

Listed:
  • Abel, Martin

    (Bowdoin College)

  • Bomfim, Emma

    (Bowdoin College)

  • Cisneros, Izzy

    (Bowdoin College)

  • Coyle, Jackson

    (Bowdoin College)

  • Eraou, Song

    (Bowdoin College)

  • Gebeyehu, Martha

    (Bowdoin College)

  • Hernandez, Gerardo

    (Bowdoin College)

  • Juantorena, Julian

    (Bowdoin College)

  • Kaplan, Lizzy

    (Bowdoin College)

  • Marquez, Danielle

    (Bowdoin College)

  • Mullen, Jack

    (Bowdoin College)

  • Mulhern, Peyton

    (Bowdoin College)

  • Opong-Nyantekyi, Ayana

    (Bowdoin College)

  • Osathanugrah, Rin

    (Bowdoin College)

  • Paul, Joe

    (Bowdoin College)

  • Philie, Austin

    (Bowdoin College)

  • Tingley, Luke

    (Bowdoin College)

  • Wang, Jingyi

    (Bowdoin College)

Abstract

We conduct an incentivized experiment with a nationally representative sample to investigate gender discrimination among people receiving advice on risky investments. Participants learn about actual start-up firms they can invest in. Before deciding how much of their endowment to invest, they receive recommendations from either female or male professionals. We find that before outcomes are revealed, participants are equally likely to follow recommendations of female and male advisors. Likewise, we observe no gender discrimination following advice that proves correct. However, for advice that turns out to be incorrect, advisor gender significantly impacts the decisions made by male participants. They invest 47% less in the direction of this advice compared to situations where male advisors were incorrect. These differences are not explained by participants' stated views on gender roles and advisors' ability as well as the level of attention towards female advisors.

Suggested Citation

  • Abel, Martin & Bomfim, Emma & Cisneros, Izzy & Coyle, Jackson & Eraou, Song & Gebeyehu, Martha & Hernandez, Gerardo & Juantorena, Julian & Kaplan, Lizzy & Marquez, Danielle & Mullen, Jack & Mulhern, P, 2024. "Are Women Blamed More for Giving Incorrect Financial Advice?," IZA Discussion Papers 17537, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17537
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    References listed on IDEAS

    as
    1. Ratna Sahay & Martin Cihak, 2018. "Women in Finance: A Case for Closing Gaps," IMF Staff Discussion Notes 18/05, International Monetary Fund.
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    More about this item

    Keywords

    gender discrimination; investment decisions; financial advising;
    All these keywords.

    JEL classification:

    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

    NEP fields

    This paper has been announced in the following NEP Reports:

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