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Financial risk taking, gender and social identity - Evidence from national surveys of household finance

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  • Nataliya Barasinska
  • Dorothea Schäfer

Abstract

Based on household survey data, we compare men's and women's willingness to take investment risk in four European countries, each with a distinct level of gender equality. Our analysis reveals three main results. Firstly, in Italy, the country with the lowest degree of gender equality in our sample, women are less likely to take investment risk as men with the same risk preferences. Social norms seem to explain this result as further investigation of the Italian case confirms. Secondly, in the three countries with a comparatively high degree of gender equality, Austria, The Netherlands and Spain, women self-select into the group of risk-taking investors and are therefore, on average, as risk tolerant as their male counterparts. Thirdly, the risk preferences of both spouses have a significant effect on the couple's risk-taking. Therefore, risk taking within a couple may be gender-independent and be the result of a compromise.

Suggested Citation

  • Nataliya Barasinska & Dorothea Schäfer, 2013. "Financial risk taking, gender and social identity - Evidence from national surveys of household finance," LWS Working papers 15, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:lwswps:15
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    More about this item

    Keywords

    Gender; Risk aversion; Financial behavior;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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