Testosterone is associated with self-employment among Australian men

In and out of unemployment-Labour market transitions and the role of testosterone

Biological processes have provided new insights into diverging labour market trajectories. This paper uses population variation in testosterone levels to explain transition probabilities into and out of unemployment. We examine labour market transitions for 2004 initially employed and 111 initially unemployed British men from the UK Household Longitudinal Study ("Understanding Society") between 2011 and 2013. We address the endogeneity of testosterone levels by using genetic variation as instrumental variables (Mendelian Randomization). We find that for both initially unemployed men as well as initially employed men, higher testosterone levels reduce the risk of unemployment. Based on previous studies and descriptive evidence, we argue that these effects are likely driven by differences in cognitive and non-cognitive skills as well as job search behaviour of men with higher testosterone levels. Our findings suggest that latent biological processes can affect job search behaviour and labour market outcomes without necessarily relating to illness and disability.

The 2D:4D ratio does not always correlate with economic behavior: A field experiment with African-Americans

Several studies present evidence of correlations between prenatal testosterone exposure measured with the 2D:4D ratio and behaviors such as pro-social behavior, risk and patient attitudes, and self-employment. Individuals exposed prenatally to higher levels of testosterone have lower levels of risk aversion, higher levels of patience and invest more in others, and in themselves, therefore have higher individual financial wellbeing. We test these hypotheses with a sample of 115 African-Americans who live in a low-income urban area in the U.S. The 2D:4D ratio in our sample of males and females does not have a consistent and robust correlation with risk, patient attitudes, pro-social behavior and self-employment in contrast to previous studies.

The role of testosterone and estrogen in consumer behavior and social & economic decision making: A review

A contribution to a special issue on Hormones and Human Competition.This manuscript reviews the current literature on the actions of the steroid hormones testosterone and estradiol in shaping humans' behavior within two applied contexts, specifically consumer behavior and decision making (both social and economic). The theoretical argument put forth is that steroids shape these everyday behaviors and choices in service to being more competitive in achieving long-term goals related to resource acquisition, mating success, and social dominance. In addition, a discussion of the increased research focus on the role of steroids in other applied business domains will highlight the relevant applications of basic science discoveries in behavioral endocrinology.