Gender Gap in Personal Bankruptcy Risks: Empirical Evidence from Singapore. (3rd December 2016)

• Record Type: Journal Article
• Authors: Agarwal, Sumit; He, Jia; Sing, Tien Foo; Zhang, Jian
• Is Part Of: Review of finance. Volume 22:Number 2(2018)
• Page Start: 813
• Page End: 847
• Publication Date: 2016-12-03
• Subjects: A12 -- G02 -- J16; Gender gap -- Personal bankruptcy events -- Motor vehicle accident risks -- Risk attitude -- Household finance; Finance -- Europe -- Periodicals; Financiën; Finance; Periodicals; 332.09405
• DOI: 10.1093/rof/rfw063
• Languages: English
• ISSNs: 1572-3097

Abstract

Abstract: Gender gap can arise due to various factors—socio-economic, culture, risk attitudes, and macro-economic circumstances. Using a unique dataset that merges motor vehicle events with bankruptcy outcomes and personal data from Singapore, this study finds significant evidence of a gender gap in personal bankruptcy risk. We show that women's odds of being involved in bankruptcy events are 28% of those of men after controlling for demographic variables, housing type, cultural and spatial fixed effects. Using motor vehicle accidents as an instrument, we confirm that the gender gap in bankruptcy risk is mainly driven by risk-taking behavior. The heterogeneity analyses show that culture also explains part of the difference. Chinese, Indian, and Malay women have differential bankruptcy rates in Singapore.