Does marriage equality promote credit access? Evidence from same-sex marriage laws

B-Tier
Journal: Journal of Corporate Finance
Year: 2022
Volume: 77
Issue: C

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We show that following the legalization of same-sex marriage across US states, mortgage applications from same-sex borrowers are more likely to be denied relative to a matched sample of different-sex borrowers. Our findings are robust to using a stacked regression design and several approaches to account for compositional changes in the pool of mortgage applicants around same-sex legalization. FinTech lenders, which rely less on human loan officers, experience no change in the denial gap. Our results highlight information frictions between loan officers and same-sex borrowers as one channel for the increased denial gap between same-sex and different-sex applications.

Technical Details

RePEc Handle
repec:eee:corfin:v:77:y:2022:i:c:s0929119922001584
Journal Field
Finance
Author Count
3
Added to Database
2026-01-25