Gender differences in willingness to compete: The role of public observability

A recent literature emphasizes that gender differences in the labor market may in part be driven by a gender gap in willingness to compete. However, whereas experiments in this literature typically investigate willingness to compete in private environments, real world competitions often have a more public nature, which introduces potential social image concerns. If such image concerns are important, and men and women differ in the degree to which they want to be seen as competitive, making tournament entry decisions publicly observable may further exacerbate the gender gap. We test this prediction using a laboratory experiment (N = 784) that varies the degree to which the decision to compete, and its outcome, is publicly observable. We find that public observability does not alter the magnitude of the gender gap in willingness to compete in an economically or statistically significant way.     

Gender differences in honesty: The role of social value orientation

This paper experimentally analyzes the role of individual social value orientation (SVO) on honest behavior. We focus on a situation where dishonest behavior pays off at somebody else’s cost. In which case, distributional preferences might matter for the willingness to act honestly. To examine this link we conduct a laboratory experiment where we first elicit SVO to measure distributional preferences. Afterwards, we implement a die rolling game to elicit dishonest behavior at an individual level. We detect a positive correlation between subjects’ SVO angle and honest behavior. Furthermore, the data confirm common gender differences, i.e., women are significantly more honest than men. Additionally, we find that, on average, women have higher SVO angles than men. A mediation analysis reveals that SVO explains the gender effect.     

Gender differences in financial risk tolerance

The purpose of this research is to explore gender differences in financial risk tolerance using a large, nationally representative dataset, the Survey of Consumer Finances. The impact of the explanatory variables in the model is allowed to differ between men and women to decompose gender differences in financial risk tolerance. The results indicate that gender differences in financial risk tolerance are explained by gender differences in the individual determinants of financial risk tolerance, and that the disparity does not result from gender in and of itself. The individual variables that moderate the relationship between gender and high risk tolerance are income uncertainty and net worth, with income uncertainty moderating the relationship between gender and some risk tolerance. Financial fiduciaries should understand the differences in income uncertainty and net worth between men and women and how those differences relate to risk tolerance.     

Parenthood,risk attitudes and risky behavior

This study analyzes how risk attitudes change when individuals experience the major life event of becoming a parent by using longitudinal data for a large and representative sample of individuals from Germany. The analysis uses a survey-based measure of risk aversion. The estimation is based on an individual fixed effects model similar to an event study. On average, men and women experience a considerable increase in risk aversion around the time of first childbirth. This increase already starts as early as two years before they become parents, it is largest shortly after childbirth and it disappears when the child becomes older. When analyzing risky choices, the results indicate that risky labor market behavior remains unaffected by parenthood.     

Gender differences in risk behavior and the link to household effects and individual wealth

This study examined the differences in risk behavior between men and women using a household survey that captured the risk preferences of two members in a household and recorded wealth at the individual level instead of the usual approach of representing wealth at the household level. After controlling for commonly used explanatory variables, such as gender, education, age, and wealth, household fixed effects explain about 15% of the variation in risk behavior. This highlights the magnitude of household effects in shaping one’s risk behavior. In general, females in the study area are more risk averse than males based on a risk game with real payout. The gender differences disappear when focusing on only the top land owners. However, even in those cases, females consider themselves more risk averse, supporting results from previous studies that link culture and societal norms to the gender differences in risk behavior.     

Interpersonal risk assessment and social preferences: An experimental study

We investigate interpersonal risk assessment, that is how individuals use either their own or their partner’s monetary resources to offset the risk that affects them or their partner. The observed behavior is in line with the predictions of a simple piecewise linear model of social preferences. Overall, individuals opportunistically draw from others’ resources to offset risk; furthermore, they display higher levels of risk aversion when delegated to choose for others rather than when choosing for themselves. However, different social types differ in the assessment of interpersonal risk. Considering our results, we suggest that studies dealing with interpersonal risk assessment should not only focus on risk preferences, but also take into account social preferences.     

Gender bias in performance evaluations: The impact of gender quotas

The intention behind imposing quotas for women on corporate boards is to close the gender gap in economic participation and help women to be promoted within organizations. However, the broader social psychological literature lends support to ideas that affirmative action policies, such as quotas, may do more harm than good for the beneficiaries. We extend this idea beyond the affected beneficiaries and ask whether this unintended negative effect spills over to women who are not immediate targets of the quota, by signaling incompetence. We develop an experimental design to investigate whether the announcement (study 1) and the implementation (study 2) of a quota for women have a direct negative effect on performance evaluations and hence reinforce the existing gender bias in evaluation. We observed that the performance of women was evaluated significantly lower than that of men. However, this gender bias was limited to sequential (rating) evaluations and was not evident in joint (ranking) evaluations. The quota did not significantly influence the amount of this bias. In addition, we observed more pronounced sexism in males compared to females. Results of study 2 gave a hint to an association between higher sexism and lower evaluations of women’s performance. We also found some evidence for a stronger evaluation bias in females when controlling for sexist attitudes. Hence, our results imply that the bias, which is overall quite robust and strongly pronounced, is still affected by individual gender-related characteristics.     

Gender differences in perceptions of aftercare supports and services

Youth depart residential care with many continued risk factors, unique needs, and challenges as they reintegrate into the home, school, and community settings. Currently, there is limited research on needs and best practices in aftercare services and supports for youth departing from residential settings and even less is known about how these differ by gender. While preliminary studies have explored perceptions of need during reintegration and aftercare by youth and caregivers, little is known about how these may differ by gender or if perceptions change over time after experiencing the initial transition period. One way to address this knowledge gap is to identify how prepared males and females feel for reintegration in critical life domains, their beliefs about aftercare, and preferences regarding potential services or supports to aide in the reintegration at discharge. Therefore, the purpose of this study was to explore if males and females differ on preparedness for reintegration across critical life domains, beliefs about aftercare, and preferences regarding potential services or supports to aide in the reintegration at departure from a residential treatment facility (N = 132). Overall, very few differences were found between males and females at departure. Implications, limitations, and future research are discussed.     

Childhood exposure to the Second World War and financial risk taking in adult life

Adverse childhood experiences might have long-lasting effects on decisions under uncertainty in adult life. Merging the European Survey on Health, Ageing and Retirement with data on conflict events during the Second World War, and relying on region-by-cohort variation in war exposure, we show that warfare exposure during childhood is associated with lower financial risk taking in later life. Individuals who experienced war episodes as children hold less – and are less likely to hold – stocks, but are more likely to hold life insurance, compared to non-exposed individuals. Effects are robust to the inclusion of potential mediating factors, and are tested for nonlinearity and heterogeneity. Moreover, we provide evidence of hedonic adaptation to war, as high and low intensity of war exposure have comparable long-term effects. We also document that war exposure in childhood increases sensitivity to financial uncertainty since exposed-to-war individuals are less likely to hold stocks after periods of high volatility. Finally, we shed light on the most likely mechanism in the relationship between war exposure and financial risk taking – i.e., enhanced sensitivity to uncertainty – and we show that preferences, and not beliefs, channel this relationship.     

Gender differences in tournament and flat-wage schemes: An experimental study

We present a new experiment that explores gender differences in both performance and compensation choices. While most of the previous studies have focused on tournament vs. piece-rate schemes, the originality of our study consists in examining the gender gap in the context of a flat wage scheme. Our data indicate that females exert a significantly higher effort than men in fixed payment schemes. We find however no gender difference in performance under the tournament scheme, due to a combination of two effects. On the one hand, men more significantly increase their effort when switching from a flat wage to a tournament scheme. On the other hand, when switching from the flat wage to a tournament scheme, women have less margin to increase performance since their effort was already relatively high with a flat wage. We also find that females are more likely than males to choose a flat-wage scheme than a tournament. This gap however narrows dramatically when feedback on previous experience is provided.     

Gender differences in team work and team competition

We study whether the gender performance gap is affected by the gender composition of teams. A real-effort experiment is employed with wages based either on the team’s performance, or on the outcome of a competition between teams. We find that, relative to a single-sex environment, gender diversity increases the gender performance gap with team pay whereas it decreases the gap with team competition. The results show that there can be a tension between the objective to maximize overall performance and to minimize gender inequality.     

Gender bias in job referrals: An experimental test

Employee referral programs, while efficient for the employer, have been shown to amplify sex-based occupational segregation in labor markets because of the tendency of workers to refer people of the same gender. We implement a controlled laboratory experiment that precludes any concern for network composition or reputation effects in referral choice. In this way, our experimental design allows us to disentangle statistical discrimination, preferences, and implicit same-gender bias. Our data suggest that women tend to favor women when choosing a candidate, whereas men do not attach much importance to the gender of potential candidates. We deduce from our various treatments that same-gender referrals are mainly driven by preferences in competitive environments and implicit same-gender bias in cooperative environments. Our findings add to the existing literature by highlighting that gendered networks alone fail to explain the observed gender homophily in referred-referrer pairs.     

Gender differences in risk behaviour in financial decision-making: An experimental analysis

This paper examines whether gender differences in risk propensity and strategy in financial decision-making can be viewed as general traits, or whether they arise because of context factors. It presents the results of two computerised laboratory experiments designed to examine whether differences in risk preference and decision strategies are explained by the framing of tasks and level of task familiarity to subjects. The results show that females are less risk seeking than males irrespective of familiarity and framing, costs or ambiguity. The results also indicate that males and females adopt different strategies in financial decision environments but that these strategies have no significant impact on ability to perform. Because strategies are more easily observed than either risk preference or outcomes in day to day decisions, strategy differences may reinforce stereotypical beliefs that females are less able financial managers.     

From attitudes to social networks: National gender-role attitudes and gender differences in late-life social relationships

Studies often find gender differences in social networks in later life, but are these findings universal, or do they differ in various cultural contexts? To address this research gap, the current study examines the association between gender differences in social relationships and country-level gender-role attitudes. We combined data from the Survey of Health, Ageing and Retirement in Europe (SHARE) of individuals aged 50 years and older with country-level data on gender-role attitudes from the European Values Survey (EVS) for 15 European countries. We estimated a series of multivariate hierarchical regression models that predicted the size of the personal social network, its emotional closeness, and the proportion of the spouse, children, and friends in the network. The results indicated gender differences in social network characteristics. Women reported larger social networks and were more likely to have larger proportions of children and friends but smaller proportions of the spouse in their social networks. The magnitude of gender differences was associated with country-level gender-role attitudes. In countries with more egalitarian gender-role attitudes, women had larger networks with a larger proportion of friends compared to men. In countries with more traditional gender-role attitudes, women had larger proportions of their children and spouse in their social networks and had emotionally closer networks. Our findings suggest that the societal context and opportunity structures for social interactions play an important role in shaping the structure of women’s and men’s social relationships in later life.     

Altruism and information

Experimental literature has accumulated evidence on the association of social identity to a higher or lower level of prosocial behavior. There is also evidence that donations are affected by the mere provision of information about the recipients, whatever its nature or content. In this paper, we present a unified experimental framework (within-subjects) to analyze the impact of different information sets (that concern social class, political orientation or gender) on the level of giving; our experimental design allows us to reveal the effect of three information sets, with respect to the baseline treatment of no information, and separately from the effect of the informational content. A between-subjects replication in M-Turk provides results in the same direction, although the treatment effects are much weaker. These results could be relevant to any design intended to measure the impact on altruism of different dimensions of social identity.     

Measures of individual risk attitudes and portfolio choice: Evidence from pension participants

We use a large non-student sample to test how distinct measures of risk-attitudes relate to each other, to demographic characteristics and to real-life risk taking in the financial domain. These measures, namely the Bomb Risk Elicitation Task (BRET), self-reported willingness to take risks in general, the choice in a hypothetical lottery, the score in the Domain Specific Risk-Taking (DOSPERT) scale, appear to be positively correlated and exhibit a certain degree of consistency. Furthermore, a subset of these measures is driven by similar demographic characteristics as such that males are more risk seeking and risk-aversion increases with age. Using extensive data on the retirement portfolios of the participants during the years 2008–2014, we find that all of these measures are positively correlated with the riskiness of individual portfolios. The self-reported willingness to take risks in general appears to be the most relevant measure in predicting actual risk-taking behavior.     

Rent-seeking and competitive preferences

In this experiment, I examine the extent to which competitive social preferences can explain over-bidding in rent-seeking contests. The Human treatment is a standard two-player contest. In the Robot treatment, a single player bids against a computerized player, eliminating potential social preference motives. The results show no difference in bids between treatments at the aggregate level. Further analysis shows evidence of heterogeneous treatment effects between impulsive and reflective subjects. Moreover, impulsive subjects are more likely than reflective subjects to deviate qualitatively from the shape of the theoretical best response function.     

Sexual activity and risk taking in young heterosexual men: The relevance of sexual arousability,mood, and sensation seeking

In this research we explored three aspects of personality relevant to sexual activity and sexual risk taking in heterosexual men. Men with low inhibition of sexual arousal in the face of risk (low SIS2) reported more partners with whom they use no condoms and more lifetime “one night stands.” Men who experience increased sexual interest in states of depression (MSQ) reported more partners in the past year and more one night stands. The disinhibition subscale of the Sensation Seeking Scale was predictive of whether sexual intercourse had occurred in the past 6 months, and also of the number of sexual partners in the past year. A measure of an intention to practice safer sex was strongly related to measures of sexual arousability and inhibition (SIS/SES). We discuss some clear similarities and also some interesting differences with a parallel study of gay men. Individual differences in sexual excitation and inhibition proneness and the relation between mood and sexuality are clearly relevant to high‐risk sexual behavior and should be taken into consideration when designing behavioral interventions.     

Income in jeopardy: How losing employment affects the willingness to take risks

Identifying the determinants of risk-taking is crucial for our understanding of a variety of choices. Using German panel data, we find that people become more risk-averse when losing work. The immediate income loss does not mediate this effect. It seems also unrelated to the loss of non-monetary benefits of work and to changes of worker’s emotional state. However, we find that risk aversion responds the more strongly to losing work the more future income is at stake, and that the effect manifests itself already on the eve of job loss when people do not yet suffer from the consequences of the event. We conclude that lower future income expectations and more uncertainty about future incomes may explain the effect of job loss on risk attitude. Our results might imply that a recession may reinforce itself as it induces people to fear job loss, which raises their risk aversion and might therefore reduce the willingness to invest in risky projects. Moreover, self-assessed risk attitude seems to measure absolute risk aversion and thus not only an underlying risk preference parameter.     

Rank and response: A field experiment on peer information and water use behavior

Perception of peer rank, or how we perform relative to our peers, can be a powerful motivator. While research exists on the effect of social information on decision making, there is less work on how ranked comparisons with our peers influence our behavior. This paper outlines a field experiment conducted with 3896 households in Castro Valley, California, which uses household mailers with various forms of social information and peer rank messaging to motivate water conservation. The experiment tests the effect of a visible peer rank on water use, and how the competitive framing of rank information influences behavioral response. The results show that households with relatively low or high water use in the pre-treatment period responded differently to how rank information was framed. I find that a neutrally-framed peer rank caused a small “boomerang effect” (i.e., an increase in average water use) for low water use households, but this effect was eliminated by competitive framing. At the same time, a competitively-framed peer rank demotivated high water use households, increasing their average water use over the full period of the experiment. This result is supported by evidence that the competitive frame on rank information increased water use for households who ranked “last” in the peer group – a detrimental “last place effect” from competitively-framed rankings.