Is gender a good predictor of fi nancial risk taking? Evidence from national surveys of household fi nance

This study investigates the role of gender in individuals’ financial risk taking. We find that although females exhibit, on average, lower risk propensity than males, the effect of gender on the actual risk taking varies across countries and across types of financial decisions. Specifically, we find that gender-based differences in the risk taking depend on the level of gender equality in a given society. Where gender inequality is substantial, females are less likely to invest in risky assets than males even when their willingness to take financial risks is equal. Furthermore, we find no gender effects on the portfolio share of wealth allocated to risky assets in all countries but the one with the highest gender inequality