Cross-national differences in risk preference and individual deprivation: A large-scale empirical study

Abstract

Although risk-taking has been found to be associated with economic deprivation, there is little evidence on whether the relationship between individual deprivation and propensity for risk-taking is inherent to all individuals, or varies across cultural contexts. Consequently, the present study investigated the interaction effects of macroeconomic factors [Gross Domestic Product (GDP) per capita and Human Development Index (HDI)] in the relationship between individual deprivation and propensity for risk-taking using the World Values Survey data from 58 countries (N=87,223). On average, individuals in more developed countries (higher HDI) had less propensity for risk-taking. However, in contradiction to this, the positive association between individual deprivation and risk-taking was stronger in countries with higher GDP per capita. The present study suggests that the association between individual deprivation and propensity for risk-taking varies with environmental variables assessing the socio-economic development of a country.