Risk Tolerance among National Longitudinal Survey of Youth Participants: The Effects of Age and Cognitive Skills

Bidisha Mandal and Brian Roe

Economica, 2014, vol. 81, issue 323, 522-543

Abstract: type="main" xml:id="ecca12088-abs-0001">

We analyse how age and cognitive skills are related to risk tolerance among respondents to the National Longitudinal Survey of Youth between 1993 and 2006. Older individuals display lower risk tolerance than younger individuals, though as the panel ages from their early thirties to their mid-forties, differences in risk tolerance between the oldest and youngest individuals narrow, while panel-average risk tolerance declines. In contrast to other studies, we find that cognitive skill measured during respondents' teenage years is related to risk tolerance in a non-linear fashion, where respondents with the lowest and highest skills reveal the greatest risk tolerance.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://hdl.handle.net/10.1111/ecca.2014.81.issue-323 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:econom:v:81:y:2014:i:323:p:522-543

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0013-0427

Access Statistics for this article

Economica is currently edited by Frank Cowell, Tore Ellingsen and Alan Manning

More articles in Economica from London School of Economics and Political Science Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().