School environment and risk preferences: Experimental evidence

Catherine Eckel, Philip Johnson Grossman, Cathleen Johnson, Angela C M de Oliveira, Christian Rojas, Rick K Wilson

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Using a field experiment with high school students, we evaluate the development of risk preferences. Examining the impact of school characteristics on preference development reveals both peer and quality effects. For the peer effect, individuals in schools with a higher percentage of students on free or reduced lunches (hence a higher proportion of low-income peers with whom to interact) are significantly more risk averse. For the quality effect, individuals in schools with smaller class sizes and a higher percentage of educators with advanced degrees have higher, more moderate levels of risk aversion. We further discuss economic, cognitive and emotional development theories of risk preferences. Data show demographic-related patterns: girls are more risk averse on average, while taller and nonwhite individuals are more risk tolerant.
Original languageEnglish
Pages (from-to)265 - 292
Number of pages28
JournalJournal of Risk and Uncertainty
Volume45
Issue number3
DOIs
Publication statusPublished - 2012

Cite this

Eckel, C., Grossman, P. J., Johnson, C., de Oliveira, A. C. M., Rojas, C., & Wilson, R. K. (2012). School environment and risk preferences: Experimental evidence. Journal of Risk and Uncertainty, 45(3), 265 - 292. https://doi.org/10.1007/s11166-012-9156-2
Eckel, Catherine ; Grossman, Philip Johnson ; Johnson, Cathleen ; de Oliveira, Angela C M ; Rojas, Christian ; Wilson, Rick K. / School environment and risk preferences: Experimental evidence. In: Journal of Risk and Uncertainty. 2012 ; Vol. 45, No. 3. pp. 265 - 292.
@article{10a19b1ad14b4534b2e81eb3eee8ee30,
title = "School environment and risk preferences: Experimental evidence",
abstract = "Using a field experiment with high school students, we evaluate the development of risk preferences. Examining the impact of school characteristics on preference development reveals both peer and quality effects. For the peer effect, individuals in schools with a higher percentage of students on free or reduced lunches (hence a higher proportion of low-income peers with whom to interact) are significantly more risk averse. For the quality effect, individuals in schools with smaller class sizes and a higher percentage of educators with advanced degrees have higher, more moderate levels of risk aversion. We further discuss economic, cognitive and emotional development theories of risk preferences. Data show demographic-related patterns: girls are more risk averse on average, while taller and nonwhite individuals are more risk tolerant.",
author = "Catherine Eckel and Grossman, {Philip Johnson} and Cathleen Johnson and {de Oliveira}, {Angela C M} and Christian Rojas and Wilson, {Rick K}",
year = "2012",
doi = "10.1007/s11166-012-9156-2",
language = "English",
volume = "45",
pages = "265 -- 292",
journal = "Journal of Risk and Uncertainty",
issn = "0895-5646",
publisher = "Springer-Verlag London Ltd.",
number = "3",

}

Eckel, C, Grossman, PJ, Johnson, C, de Oliveira, ACM, Rojas, C & Wilson, RK 2012, 'School environment and risk preferences: Experimental evidence', Journal of Risk and Uncertainty, vol. 45, no. 3, pp. 265 - 292. https://doi.org/10.1007/s11166-012-9156-2

School environment and risk preferences: Experimental evidence. / Eckel, Catherine; Grossman, Philip Johnson; Johnson, Cathleen; de Oliveira, Angela C M; Rojas, Christian; Wilson, Rick K.

In: Journal of Risk and Uncertainty, Vol. 45, No. 3, 2012, p. 265 - 292.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - School environment and risk preferences: Experimental evidence

AU - Eckel, Catherine

AU - Grossman, Philip Johnson

AU - Johnson, Cathleen

AU - de Oliveira, Angela C M

AU - Rojas, Christian

AU - Wilson, Rick K

PY - 2012

Y1 - 2012

N2 - Using a field experiment with high school students, we evaluate the development of risk preferences. Examining the impact of school characteristics on preference development reveals both peer and quality effects. For the peer effect, individuals in schools with a higher percentage of students on free or reduced lunches (hence a higher proportion of low-income peers with whom to interact) are significantly more risk averse. For the quality effect, individuals in schools with smaller class sizes and a higher percentage of educators with advanced degrees have higher, more moderate levels of risk aversion. We further discuss economic, cognitive and emotional development theories of risk preferences. Data show demographic-related patterns: girls are more risk averse on average, while taller and nonwhite individuals are more risk tolerant.

AB - Using a field experiment with high school students, we evaluate the development of risk preferences. Examining the impact of school characteristics on preference development reveals both peer and quality effects. For the peer effect, individuals in schools with a higher percentage of students on free or reduced lunches (hence a higher proportion of low-income peers with whom to interact) are significantly more risk averse. For the quality effect, individuals in schools with smaller class sizes and a higher percentage of educators with advanced degrees have higher, more moderate levels of risk aversion. We further discuss economic, cognitive and emotional development theories of risk preferences. Data show demographic-related patterns: girls are more risk averse on average, while taller and nonwhite individuals are more risk tolerant.

U2 - 10.1007/s11166-012-9156-2

DO - 10.1007/s11166-012-9156-2

M3 - Article

VL - 45

SP - 265

EP - 292

JO - Journal of Risk and Uncertainty

JF - Journal of Risk and Uncertainty

SN - 0895-5646

IS - 3

ER -