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Gender Differences in Personal Income and Financial Risk Tolerance: How Much of a Connection?
Author(s) -
Roszkowski Michael J.,
Grable John E.
Publication year - 2010
Publication title -
the career development quarterly
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.846
H-Index - 53
eISSN - 2161-0045
pISSN - 0889-4019
DOI - 10.1002/j.2161-0045.2010.tb00192.x
Subject(s) - earnings , wage , demographic economics , sample (material) , financial risk , personal income , economics , labour economics , actuarial science , finance , economic growth , chemistry , chromatography
Prior research indicates that relative to men, women generally have lower incomes and typically are more risk averse. In a sample of the clientele of financial planners, men had higher personal incomes and exhibited greater financial risk tolerance, which is consistent with previous studies. The authors' objective was to determine how much of the gender difference in income could be explained by risk tolerance. Results indicate that risk tolerance can explain some of the variation in earnings between women and men but that it is not a primary reason for the wage gap.