Gender Differences in Personal Income and Financial Risk Tolerance: How Much of a Connection?
Article first published online: 23 DEC 2011
2010 National Career Development Association
The Career Development Quarterly
Volume 58, Issue 3, pages 270–275, March 2010
How to Cite
Roszkowski, M. J. and Grable, J. E. (2010), Gender Differences in Personal Income and Financial Risk Tolerance: How Much of a Connection?. The Career Development Quarterly, 58: 270–275. doi: 10.1002/j.2161-0045.2010.tb00192.x
- Issue published online: 23 DEC 2011
- Article first published online: 23 DEC 2011
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.