Are Women More Credit-Constrained than Men?: Evidence from a Rising Credit Market
AbstractThis study investigates whether gender discrimination is taking place in an innovative credit market known as peer-to-peer lending. Based on the data of the largest German peer-to-peer lending platform, we observe that female borrowers pay on average higher interest rates than males despite the fact that the two gender groups do not differ with respect to their credit risk. Our analysis shows however that this interest rate gap doesn't emerge because of discrimination against female borrowers. In all probability, female borrowers deliberately offer higher interest rates in anticipation that they would be otherwise discriminated.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Working Paper / FINESS with number 6.3.
Length: 27 p.
Date of creation: 2010
Date of revision:
gender; financial constraints; peer-to-peer lending;
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
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