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Preference for women but less preference for indigenous women: A lab-field experiment of loan discrimination in a developing economy

Author

Listed:
  • Rolando Gonzales
  • Gabriela Aguilera-Lizarazu
  • Andrea Rojas-Hosse
  • Patricia Aranda

Abstract

A field experiment was performed in a controlled laboratory setting to evaluate whether credit officers reject micro-loan applications based on the ethnicity/gender of potential borrowers. Point estimates of a mixed-effects logistic regression suggest that, compared to non-indigenous men, non-indigenous women have two times more chance of loan approval, and indigenous women have 1.5 more chance of loan approval. The interval results regarding ethnic discrimination are inconclusive, however some evidence of taste-based discrimination in credit lending that was favorable for non-indigenous women was found.

Suggested Citation

  • Rolando Gonzales & Gabriela Aguilera-Lizarazu & Andrea Rojas-Hosse & Patricia Aranda, 2016. "Preference for women but less preference for indigenous women: A lab-field experiment of loan discrimination in a developing economy," Working Papers PIERI 2016-24, PEP-PIERI.
    • Handle: RePEc:lvl:piercr:2016-24
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    References listed on IDEAS

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    More about this item

    Keywords

    Credit access; gender gaps; indigenous peoples; discrete choice; Bayesian analysis;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General

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