6 Pages Posted: 26 Jan 2010
This paper provides numerical estimates of the distributions of risk tolerance for men and women. A simple model of individual portfolio choice is calibrated to data on Individual Retirement Accounts from the Health and Retirement Study to obtain the estimates. Results show that women tend to be less risk-tolerant than men. The estimates are then used to measure the impact of risk tolerance on wealth accumulation. Simulations show that the difference in risk tolerance can account for around 10% of the gender difference in accumulated wealth.
JEL Classification: J16, G11, D81
Suggested Citation: Suggested Citation
Neelakantan, Urvi, Estimation and Impact of Gender Differences in Risk Tolerance. Economic Inquiry, Vol. 48, No. 1, pp. 228-233, January 2010. Available at SSRN: https://ssrn.com/abstract=1542304 or http://dx.doi.org/10.1111/j.1465-7295.2009.00251.x
This is a Wiley-Blackwell Publishing paper. Wiley-Blackwell Publishing charges $38.00 .
File name: ecin.
If you wish to purchase the right to make copies of this paper for distribution to others, please select the quantity.