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Individual Risk Attitudes: Measurement, Determinants and Behavioral Consequences
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The authors found that gender, age, height, and parental background have an economically significant impact on willingness to take risks, and the question about risk taking in general generates the best all-around predictor of risky behavior.Abstract:
This paper studies risk attitudes using a large representative survey and a complementary experiment conducted with a representative subject pool in subjects’ homes. Using a question asking people about their willingness to take risks “in general”, we find that gender, age, height, and parental background have an economically significant impacton willingness to take risks. The experiment confirms the behavioral validity of this measure, using paid lottery choices. Turning to other question about risk attitudes in specific contexts, we find similar results on the determinants of risk attitudes, and also shed light on the deeper question of stability of risk attitudes across contexts. We conduct a horse race of the ability of different measures to explain risky behaviors such as holdings stocks, occupational choice, and smoking. The question about risk taking in general generates the best all-around predictor of risky behaviorread more
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References
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Journal ArticleDOI
Male-Female Wage Differentials in Urban Labor Markets
TL;DR: In this article, the authors estimate the average extent of discrimination against female workers in the United States and provide a quantitative assessment of the sources of male-female wage differentials in the same occupation.
Journal ArticleDOI
Wage Discrimination: Reduced Form and Structural Estimates
TL;DR: In this paper, a distinction is drawn between reduced form and structural wage equations, and both are estimated They are shown to have very different implications for analyzing the white-black and male-female wage differentials.
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Risk as Feelings
TL;DR: It is shown that emotional reactions to risky situations often diverge from cognitive assessments of those risks, and when such divergence occurs, emotional reactions often drive behavior.
Journal ArticleDOI
Risk Aversion and Incentive Effects
Charles A. Holt,Susan K. Laury +1 more
TL;DR: In this article, a menu of paired lottery choices is structured so that the crossover point to the high-risk lottery can be used to infer the degree of risk aversion, and a hybrid "power/expo" utility function with increasing relative and decreasing absolute risk aversion is presented.
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A Domain-Specific Risk-Attitude Scale: Measuring Risk Perceptions and Risk Behaviors
TL;DR: This article presented a psychometric scale that assesses risk taking in various content domains: financial decisions, health/safety, recreational, ethical, and social decisions, and found that respondents' degree of risk taking was highly domain-specific, i.e. not consistently risk-averse or consistently riskseeking across all content domains.
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