Gender differences in risk aversion

A study explores the social basis of gender differences in risk aversion. Studies have suggested that women tend to be more risk-averse than men. However, whether this difference is biological or social in origin or how malleable the difference is in response to the social environment are unclear. Elaine Liu and Sharon Zuo examined the risk preferences of more than 500 elementary and middle school students in Yunnan Province, China. In Yunnan, children from two ethnic groups with divergent gender norms, the matrilineal Mosuo and the traditionally patriarchal Han, attend school together. To assess risk preferences, the authors allowed the students to choose one of six lotteries with varying degrees of risk and reward. The authors found that in the first grade, Mosuo boys were more risk-averse than Mosuo girls, whereas Han boys were less risk-averse than Han girls. However, as the students progressed to higher grades, Mosuo girls became increasingly risk-averse, so that by the fifth grade the Mosuo girls were more risk-averse than Mosuo boys. The latter change was larger for Mosuo girls in Mosuo-minority cohorts than in Mosuo-majority cohorts. The results suggest that gender differences in risk preferences are shaped by culture and can be influenced by the environment, according to the authors.

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Article #18-08336: "Measuring the impact of interaction between children of a matrilineal and a patriarchal culture on gender differences in risk aversion," by Elaine M. Liu and Sharon Xuejing Zuo.

MEDIA CONTACT: Elaine M. Liu, University of Houston, TX; tel: 713-743-3861, 832-212-7918; e-mail: emliu@central.uh.edu