In this post Chris Dawson, Associate Professor at the University of Bath, shares his research on the differences between men and women when it comes to risk taking and loss aversion.
It is generally seen as a stylized fact that women are more cautious and take less risks than men. Indeed, a mountain of empirical work by economists, psychologists and biologists have documented portugal rcs data this difference between the sexes across many domains.
Documenting and understanding sex differences in behaviours such as risk-taking is important as it can help us to explain other prominent sex gaps. For instance, why men are more likely to try entrepreneurship or invest in equities. Perhaps most importantly, in explaining the glass ceiling—the social barrier preventing women from being promoted to top jobs in management. Indeed, in the UK as of 2022, only 21 women were in the position of the CEO at FTSE 100 and FTSE 250 companies. Whilst factions of the media and advocacy groups typically frame the glass ceiling solely as a product of discrimination, sex differences in behaviours are also important contributing factors. Ultimately, if you really want to make the “big time” you’re going to need to take on some risk.