This study analyzes how risk attitudes change when individuals become parents
using longitudinal data for a large and representative sample of individuals.
The results show that men and women experience a considerable increase in risk
aversion which already starts as early as two years before becoming a parent,
is largest shortly after giving birth and disappears when the child becomes
older. These findings show that parenthood leads to considerable changes in
individual risk attitudes over time. Thus, analyses using risk preferences as
the explanatory variable for economic outcomes should be careful in
interpreting the findings as causal effects.