Systematic differences in the attitudes of men and women toward risk is well established and has been shown to contribute substantially to gender-specific outcomes within labour markets and goods markets. Despite these important implications, surprisingly little is known about the source of gender differences in risk-taking. Focusing on the role of risk-related emotions, this paper empirically tests the theory that gender differences in attitudes towards risk can be explained, in part, by differences in how men and women respond to negative outcomes. Using a large UK longitudinal survey, we find that women on average have more intense psychological reactions to monetary losses than men, leading to a lower self-assessed ‘willingness to take risks in general’.
|Publication status||Published - 23 Sep 2020|