Abstract
We suggest investor prejudice against women in finance as one potential explanation for the low fraction of women in the U.S. mutual fund industry. Our empirical results show that female-managed funds experience lower inflows than male-managed funds. This finding cannot be explained by rational statistical discrimination. Results are confirmed in a lab experiment where subjects choose between index funds. To test directly for prejudice against women in finance we conduct an implicit association test (IAT). Subjects with higher prejudice scores invest significantly less into female-managed funds in the experiment. Thus, our results suggest that social biases can affect investment decisions. JEL-Classication Codes : G23, J71
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