Discriminatory Lending: Evidence from Bankers in the Lab

A-Tier
Journal: American Economic Journal: Applied Economics
Year: 2023
Volume: 15
Issue: 2
Pages: 31-68

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We implement a lab-in-the-field experiment with 334 Turkish loan officers to document gender discrimination in small business lending and unpack mechanisms. Officers review multiple real-life loan applications in which we randomize applicant gender. While unconditional approval rates are the same, officers are 26 percent more likely to require a guarantor when we present the same application as coming from a female instead of a male entrepreneur. A causal forest algorithm to estimate heterogeneous treatment effects reveals that discrimination is concentrated among young, inexperienced, and gender-biased officers. Discrimination mainly affects female loan applicants in male-dominated industries, indicating how financial frictions can perpetuate entrepreneurial gender segregation across sectors.

Technical Details

RePEc Handle
repec:aea:aejapp:v:15:y:2023:i:2:p:31-68
Journal Field
General
Author Count
2
Added to Database
2026-01-24