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Racial Disparities in Credit Constraints in the Great Recession: Evidence from the UK

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  • Gathergood John

    ()
    (University of Nottingham)

Abstract

This paper investigates racial disparities in household credit constraints using UK survey data. We find a widening disparity in the proportion of racial minority households reporting they face credit constraints compared with non-minority households over the period 2006-2009. By 2009 three times as many racial minority households faced credit constraints compared with non-minority households. The difference in credit constraints across racial minority and non-minority households is not explained by a broad set of covariates. While cross-section variation in reported credit constraints might most likely reflect unobservables, we argue this time series variation is very unlikely to arise due to unobservables and is evidence of growing perceived disparity in credit access between racial groups over the period.

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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 11 (2011)
Issue (Month): 1 (September)
Pages: 1-32

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Handle: RePEc:bpj:bejeap:v:11:y:2011:i:1:n:61

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Cited by:
  1. Jaanika Merik├╝ll, 2012. "Households borrowing during a creditless recovery," Bank of Estonia Working Papers wp2012-2, Bank of Estonia, revised 22 Feb 2012.

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