Gender Di¤erences in Risk Behaviour: Does Nurture Matter?

Women and men may di¤er in their propensity to choose a risky outcome because of innate preferences or because pressure to conform to gender-stereotypes encourages girls and boys to modify their innate preferences. Single-sex environments are likely to modify students’risk-taking preferences in economically important ways. To test this, we designed a controlled experiment in which subjects were given an opportunity to choose a risky outcome a real-stakes gamble with a higher expected monetary value than the alternative outcome with a certain payo¤ and in which the sensitivity of observed risk choices to environmental factors could be explored. The results of our real-stakes gamble show that gender di¤erences in preferences for risk-taking are indeed sensitive to whether the girl attends a single-sex or coed school. Girls from single-sex schools are as likely to choose the real-stakes gamble as boys from either coed or single sex schools, and more likely than coed girls. Moreover, gender di¤erences in preferences for risk-taking are sensitive to the gender mix of the experimental group, with girls being more likely to choose risky outcomes when assigned to all-girl groups. This suggests that observed gender di¤erences in behaviour under uncertainty found in previous studies might re‡ect social learning rather than inherent gender traits. JEL Classi…cation: C9, C91, C92, J16