Table 2.
Regressions of risk aversion on demographic variables
| Variable | PSID Ages 21–54 | HRS Ages 55 + | ||
|---|---|---|---|---|
| 1 | 2 | 3 | 4 | |
| Male | -0.0848*** (0.0182) | -0.0799*** (0.0186) | -0.0416*** (0.0086) | -0.0424*** (0.0087) |
| Black | 0.0770*** (0.0201) | 0.0562** (0.0231) | 0.0158 (0.0122) | 0.0081 (0.0127) |
| Other Race | -0.0248 (0.0628) | -0.0270 (0.0646) | -0.0100 (0.0229) | -0.0028 (0.0230) |
| Hispanic | -0.0445 (0.0932) | -0.0109 (0.1017) | -0.0423*** (0.0167) | -0.0300* (0.0178) |
| High School | 0.0341 (0.0382) | 0.0391 (0.0386) | 0.0084 (0.0114) | 0.0114 (0.0115) |
| Some College | 0.0409 (0.0392) | 0.0440 (0.0396) | -0.0516*** (0.0133) | -0.0438*** (0.0134) |
| College | -0.0461 (0.0377) | -0.0379 (0.0385) | -0.0816*** (0.0140) | -0.0747*** (0.0142) |
| Real Income | -0.0006** (0.0002) | -0.0004* (0.0002) | 0.0002 (0.0001) | 0.0002* (0.0001) |
| Married | 0.0492*** (0.0177) | 0.0482 (0.0179)*** | 0.0285*** (0.0088) | 0.0266*** (0.0088) |
| Age 26-30 | 0.0168 (0.0433) | 0.0235 (0.0440) | – | – |
| Age 31-35 | 0.0553 (0.0489) | 0.0608 (0.0498) | – | – |
| Age 36-40 | 0.0601 (0.0484) | 0.0635 (0.0493) | – | – |
| Age 41-45 | 0.0883* (0.0482) | 0.0905 (0.0492)* | – | – |
| Age 46-50 | 0.1208** (0.0484) | 0.1261 (0.0493)** | – | – |
| Age 51-55 | 0.1568*** (0.0493) | 0.1615 (0.0500)*** | – | – |
| Age 61-65 | – | – | 0.0399*** (0.0046) | 0.0403*** (0.0046) |
| Age 66-70 | – | – | 0.0677*** (0.0079) | 0.0694*** (0.0079) |
| Age 71-75 | – | – | 0.0756*** (0.0100) | 0.0784*** (0.0101) |
| Age 76 + | – | – | 0.0726*** (0.0151) | 0.0760*** (0.0151) |
| Year Indicators | Yes | Yes | Yes | Yes |
| State Indicators | No | Yes | No | Yes |
| Percent Correctly Classified a | 56.8 | 57.3 | 55.6 | 56.7 |
| Pseudo R-Sq | 0.017 | 0.030 | 0.009 | 0.016 |
| Observations | 9,602 | 9,552 | 70,215 | 70,078 |
Notes: Dependent variable is a dichotomous indicator representing the most risk-averse category. Marginal effects from Probit estimation are presented. Standard errors are clustered at the individual level, and presented in parentheses.
a
Percent correctly classified is based on a cutoff corresponding to the mean of the dependent variable in each sample.