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| Evaluating risk - are women more risk averse than men? Photo Credit: Oleksandr Pidvalnyi |
Women are less willing to take risks than men because they are more sensitive to the pain of any losses, they might incur than any gains they might make, new research from the University of Bath School of Management shows.
Published in the British Psychological Society’s British Journal of Psychology, the study – “Gender differences in optimism, loss aversion and attitudes toward risk" - also finds that men are ‘significantly’ more optimistic than women, making them more willing to take risks.
Researcher Dr Chris Dawson, associate professor in business economics at the University of Bath School of Management, said the findings were significant and could help explain sex-specific outcomes in different employment sectors, and in financial markets.
‘It is widely acknowledged that men, across many domains, take more risks than women. These differences in how the sexes view risk can have significant effects,” Dr Dawson says.
‘For instance, differences between the sexes in risk taking can explain why women are less likely to be entrepreneurs, are underrepresented in high-paying jobs and upper management, and less likely to invest their wealth in equities markets than men. Despite these important implications, we still know very little about why women take fewer risks than men.

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