ABSTRACT
This chapter deals with exaggerated beliefs about gender differences regarding risk are especially likely to be firmly held and do much harm when combined with misleading claims coming out of poorly executed neuroscientific studies. Stereotypes can cause unfair and inefficient decisions to be made about women in areas such as employment, politics, and financial advising. Economists' current fashion of finding gender "differences" probably pales in its importance to public opinion next to the recent surge of what some have called "neurosexism". Many in universities and the media are eagerly suggesting a tie between women's (presumed) deficiency in bravery and women's economic and political underperformance. In the political realm, claims about women's (presumed) deficiencies can work against female candidates. The widespread belief that women are more risk-averse than men has led to two divergent recommendations concerning financial investing.
