Strong Evidence for Gender Differences in Investment

23 Pages Posted: 15 Jan 2005 Last revised: 14 Jun 2010

Gary Charness

University of California, Santa Barbara - Department of Economics

Uri Gneezy

University of California, San Diego (UCSD) - Rady School of Management

Date Written: September 18, 2007

Abstract

Are men more willing to take financial risks than women? The answer to this important question is not clear from the existing literature. We propose a novel approach to this issue, in which we both assemble the data from many experiments with thousands of participants in a simple investment game, and also conduct our own experiments. The previous experiments were not designed to investigate a gender difference and were conducted by different researchers in different countries, with different instructions, durations, payments, subject pools, etc. We find a very consistent result that women invest less, and thus appear to be more risk averse than men in their financial investments.

Keywords: Financial risk, gender differences, experiment, risk attitudes

JEL Classification: B49, C91, D81, G11, G19, J16

Suggested Citation

Charness, Gary and Gneezy, Uri, Strong Evidence for Gender Differences in Investment (September 18, 2007). Available at SSRN: https://ssrn.com/abstract=648735 or http://dx.doi.org/10.2139/ssrn.648735

Gary Charness (Contact Author)

University of California, Santa Barbara - Department of Economics ( email )

2127 North Hall
Santa Barbara, CA 93106
United States
805-893-2412 (Phone)
805-893-8830 (Fax)

Uri Gneezy

University of California, San Diego (UCSD) - Rady School of Management ( email )

9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States

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