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Discrimination in Consumer Credit Markets


  • Clifford B. Hawley

    (West Virginia University)

  • Edwin T. Fujii

    (University of Hawaii)


Using household data from the 1983 Survey of Consumer Finances, the hypothesis that there is no discrimination against protected groups in the provision of credit is tested. Using household data avoids the inherent sample selectivity problem of other research based on analyses of applicant data. The authors find that, after controlling for other factors, nonwhites are more likely to be rejected for credit than whites. Also, nonwhites, single parent families, and female heads are more likely to be discouraged from applying for credit. Taken together these results suggest that race is still a factor in the allocation of consumer credit.

Suggested Citation

  • Clifford B. Hawley & Edwin T. Fujii, 1991. "Discrimination in Consumer Credit Markets," Eastern Economic Journal, Eastern Economic Association, vol. 17(1), pages 21-30, Jan-Mar.
  • Handle: RePEc:eej:eeconj:v:17:y:1991:i:1:p:21-30

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    References listed on IDEAS

    1. Wiginton, John C., 1980. "A Note on the Comparison of Logit and Discriminant Models of Consumer Credit Behavior," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 15(03), pages 757-770, September.
    2. Richard L. Peterson, 1981. "An Investigation of Sex Discrimination in Commercial Banks' Direct Consumer Lending," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 547-561, Autumn.
    3. Lindley, James T & Selby, Edward B, Jr & Jackson, John D, 1984. "Racial Discrimination in the Provision of Financial Services," American Economic Review, American Economic Association, vol. 74(4), pages 735-741, September.
    4. Dennis J. Aigner & Glen G. Cain, 1977. "Statistical Theories of Discrimination in Labor Markets," ILR Review, Cornell University, ILR School, vol. 30(2), pages 175-187, January.
    5. Black, Harold & Schweitzer, Robert L & Mandell, Lewis, 1978. "Discrimination in Mortgage Lending," American Economic Review, American Economic Association, vol. 68(2), pages 186-191, May.
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    Cited by:

    1. repec:kap:jfsres:v:52:y:2017:i:3:d:10.1007_s10693-016-0246-1 is not listed on IDEAS
    2. Jeffrey M. Lacker, 1995. "Neighborhoods and banking," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 13-38.
    3. Solomon Y. Deku & Alper Kara & Phil Molyneux, 2014. "Access to Consumer Credit in the UK," Working Papers 14004, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).

    More about this item


    Consumer Credit; Credit; Discrimination; Finance;

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages


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