The Gender Reference Point Gap

Arbeitspapier

Studies have frequently found that women are more risk averse than men. In this paper, we depart from usual practice in economics that treats risk attitude as a primitive, and instead adopt a neuroeconomic approach where risk attitude is determined by the reference point which can be easily estimated using standard econometric methods. We then evaluate whether there is a gender difference in the reference point, explaining the gender difference in risk aversion observed using traditional approaches. In our study, women make riskier choices less frequently than men. Compared to men, we find that women on average have a significantly lower reference point. By acknowledging the reference point as a potential source of gender inequality, we can begin a new discussion on how to address this important issue.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 16138

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: General ; Neuroeconomics ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Economics of Gender; Non-labor Discrimination
• Subject: reference point ; risk attitude ; neuroeconomics ; gender ; inequality ; experiment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kettlewell, Nathan ; Levy, Jonathan ; Tymula, Agnieszka ; Wang, Xueting
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/272765
• Last update: 10.03.2025, 11:42 AM CET