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Could Women Have Prevented a Financial Crisis?

The economist Anne Sibert hypothesizes that gender inequality in the finance industry is partly to blame for the financial crisis. She points to evidence that men are less risk-averse in financial decision-making, more overconfident, and perhaps susceptible to testosterone-fueled feedback loops in asset bubbles. She concludes, “If — as the research may suggest — men are less risk-averse than women, then a work group composed primarily of men (or primarily of women) may be a particularly bad idea.” (HT: Free Exchange) [%comments]