Does education increase risk aversion in households? Some evidence using artefactual experiments in Peru

Alberto Chong, Joan J. Martínez

Research output: Contribution to journalArticle in a journalpeer-review

1 Scopus citations

Abstract

We provide empirical evidence supporting a causal link between education and risk attitudes when using representative data from representative surveys and artefactual or lab-on-the-field experiments in Lima, Peru. We employ three standard experimental measures of risk attitudes and find that each is positively correlated with years of education. Furthermore, we suggest that this relationship may be causal as we take advan-tage of an identification strategy that exploits an exogenous boom in the construction of new schools in Lima, providing evidence that more education may increase risk attitudes. Our findings are further confirmed when applying a broad set of robustness tests.

Original languageEnglish
Article number6
JournalLatin American Economic Review
Volume30
DOIs
StatePublished - 2021

Bibliographical note

Publisher Copyright:
© 2021, Centro de Investigacion y Docencia Economicas A.C.. All rights reserved.

Keywords

  • Edu-cation
  • Experiments
  • Latin America
  • Risk Attitudes
  • Surveys

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