Financial risk-taking and the gender wage gap
Summary of Working paper 2020:16
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