Financial risk-taking and the gender wage gap

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Working paper


Could differences in risk attitudes explain parts of the gender wage gap? We present estimates on the association between labor market outcomes and financial risk-taking using individual level administrative data on individual wealth portfolios and wage rates. The individual’s share of risky to total financial assets i s significantly and positively associated with the wage rate. However, it turns out that our risk measure explains only a small part of the observed gender difference in wages.

Keywords: Wages; human capital; financial risk.
JEL Classification: J31; D8