Female babies and risk-aversion: Causal evidence from hospital wards

Area of Science:

• Behavioral Economics
• Developmental Psychology
• Sociology

Background:

• Parental decision-making and risk-taking behavior are complex.
• Understanding factors influencing risk aversion is crucial for public health and economic policy.
• Limited research exists on the specific impact of offspring gender on parental risk attitudes.

Purpose of the Study:

• To provide the first causal evidence that offspring gender influences adult risk aversion.
• To quantify the magnitude of this effect using a standard economic measure.
• To explore the consistency of this effect across different demographic and national contexts.

Main Methods:

• Utilized ultrasound scan data from pediatric hospitals.
• Employed an "exogenous shock" research design based on the revelation of unborn baby's gender.
• Applied the standard Holt-Laury criterion to measure risk aversion.

Main Results:

• Parents of daughters (unborn or newborn) exhibit nearly double the risk aversion compared to parents of sons.
• This finding was consistent in both longitudinal and cross-sectional data.
• The effect was observed in both fathers and mothers, for fetuses and newborns, and across West and East European nations.

Conclusions:

• Offspring gender is a significant determinant of parental risk aversion.
• These insights can inform our understanding of health behaviors and gender inequalities.
• The study highlights a novel psychological mechanism linking family structure to economic decision-making.