Does education affect risk aversion? Evidence from the British education reform

摘要: Individual risk attitudes are frequently used to predict decisions regarding education. However, using as a control variable for about education has been criticized because of the potential reverse causality. Causality between aversion and is unclear, disentangling different directions it may run difficult. In this study, we make first attempt investigate causal effects on by examining British reform 1972, which increased duration compulsory schooling from age 15 16. Using regression discontinuity design, find that additional year increases level aversion, contrary previous findings in literature, also result particularly strong individuals with less This positive effect might alleviate concerns endogeneity/reverse causality issue when an explanatory education; sign would remain credible coefficients underestimated.