Are Women More Risk Averse? A Sequel
This paper reexamines the question of gender differences in financial relative risk aversion using updated methods and data. Specifically, the paper revisits the 1998 work “Are women more risk averse?” by Jianakoplos and Bernasek, suggests refinements in their model in relation to the database used,...
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| Format: | Article |
| Language: | English |
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MDPI AG
2025-01-01
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| Series: | Risks |
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| Online Access: | https://www.mdpi.com/2227-9091/13/1/12 |
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| author | Christos I. Giannikos Efstathia D. Korkou |
| author_facet | Christos I. Giannikos Efstathia D. Korkou |
| author_sort | Christos I. Giannikos |
| collection | DOAJ |
| description | This paper reexamines the question of gender differences in financial relative risk aversion using updated methods and data. Specifically, the paper revisits the 1998 work “Are women more risk averse?” by Jianakoplos and Bernasek, suggests refinements in their model in relation to the database used, namely the U.S. Federal Reserve Board’s Survey of Consumer Finances (SCF), and performs new tests on the latest SCF from 2022. The suggested refinements pertain first to an enhanced computation of wealth, which includes additional categories of assets such as 401(k)s or other thrift savings accounts, and second to the more subtle handling and consideration of specific demographic data of the SCF respondents. Unlike the original study, which also included married couples, the new study focuses exclusively on single-headed (never-married) households. This eliminates ambiguity about the actual financial decision maker in households, enabling a clearer assessment of individual gendered behavior. Following the refinements, the new tests reveal a continuing pattern of decreasing relative risk aversion; however, contrary to the 1998 findings, there is no significant gender difference in financial relative risk aversion in 2022. This study also documents that education levels strongly influence risk-taking: single women with higher education levels are more likely to hold risky assets, while for men, higher education correlates with less risk-taking. The paper concludes by informing policymakers and financial educators so as to further tailor their strategies for promoting gender equality in financial decision-making. |
| format | Article |
| id | doaj-art-6bde03409a094ea5a22ac4c2a2d614e5 |
| institution | Kabale University |
| issn | 2227-9091 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj-art-6bde03409a094ea5a22ac4c2a2d614e52025-01-24T13:48:20ZengMDPI AGRisks2227-90912025-01-011311210.3390/risks13010012Are Women More Risk Averse? A SequelChristos I. Giannikos0Efstathia D. Korkou1Bert Wasserman Department of Economics & Finance, Zicklin School of Business, Baruch College, The City University of New York, New York, NY 10010, USADepartment of Business and Economics, School of Business and Information Systems, York College, The City University of New York, 94-20 Guy R. Brewer Blvd., Jamaica, NY 11451, USAThis paper reexamines the question of gender differences in financial relative risk aversion using updated methods and data. Specifically, the paper revisits the 1998 work “Are women more risk averse?” by Jianakoplos and Bernasek, suggests refinements in their model in relation to the database used, namely the U.S. Federal Reserve Board’s Survey of Consumer Finances (SCF), and performs new tests on the latest SCF from 2022. The suggested refinements pertain first to an enhanced computation of wealth, which includes additional categories of assets such as 401(k)s or other thrift savings accounts, and second to the more subtle handling and consideration of specific demographic data of the SCF respondents. Unlike the original study, which also included married couples, the new study focuses exclusively on single-headed (never-married) households. This eliminates ambiguity about the actual financial decision maker in households, enabling a clearer assessment of individual gendered behavior. Following the refinements, the new tests reveal a continuing pattern of decreasing relative risk aversion; however, contrary to the 1998 findings, there is no significant gender difference in financial relative risk aversion in 2022. This study also documents that education levels strongly influence risk-taking: single women with higher education levels are more likely to hold risky assets, while for men, higher education correlates with less risk-taking. The paper concludes by informing policymakers and financial educators so as to further tailor their strategies for promoting gender equality in financial decision-making.https://www.mdpi.com/2227-9091/13/1/12financial relative risk aversiongendergender equalityindividual investorssurvey of consumer financesrisk-free assets |
| spellingShingle | Christos I. Giannikos Efstathia D. Korkou Are Women More Risk Averse? A Sequel Risks financial relative risk aversion gender gender equality individual investors survey of consumer finances risk-free assets |
| title | Are Women More Risk Averse? A Sequel |
| title_full | Are Women More Risk Averse? A Sequel |
| title_fullStr | Are Women More Risk Averse? A Sequel |
| title_full_unstemmed | Are Women More Risk Averse? A Sequel |
| title_short | Are Women More Risk Averse? A Sequel |
| title_sort | are women more risk averse a sequel |
| topic | financial relative risk aversion gender gender equality individual investors survey of consumer finances risk-free assets |
| url | https://www.mdpi.com/2227-9091/13/1/12 |
| work_keys_str_mv | AT christosigiannikos arewomenmoreriskaverseasequel AT efstathiadkorkou arewomenmoreriskaverseasequel |