Gender differences in risk aversion: Evidence from private pension system in Türkiye

Evidence on gender differences in risk aversion is ambiguous. Using actual data of participants in the Individual Pension System in Türkiye, this study provides some evidence of the gender differences in investment decisions. The findings show that men are 17.6 % less likely to exhibit high-risk tendencies compared to women. Age demonstrates a positive association with risk-taking behavior. Also, married individuals have a 35 % higher chance of partaking in high-risk behavior. Nonetheless, this effect is 16 % lower for men than for women. Furthermore, college graduation raises the probability of high-risk behavior by 24 %, while income exhibits a negative impact, decreasing the likelihood of belonging to a high-risk group. When accounting for socioeconomic factors, the direct influence of gender on risk behavior diminishes. Notably, the presence of a higher proportion of women with college degrees and lower incomes contributes to risk-taking behavior independently of gender.