Raising the Bar: Causal Evidence on Gender Differences in Risk-Taking From a Natural Experiment

We investigate the risk-taking behavior of women and men in high-stakes jumping competitions. Results indicated that female and male athletes differ in the timing and extent of their reactions to an increase in the risk of failure. Male competitors increased risk-taking in the more risky environment immediately after the changes. Female athletes, however, increased risk-taking two years after the rule change. Over time, female athletes revert to pre-reform risk-taking levels, and male athletes’ continued to make more risky decisions in the new environment. We attribute our findings to gender differences in competitiveness and risk preferences.