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Gender differences in Type 1 credit rationing of small businesses in the US

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  • Naranchimeg Mijid
  • Caroline Elliott

Abstract

This paper explores Type 1 credit rationing by gender using data from the 1998 and 2003 Survey of Small Business Finances (SSBF). Type 1 credit rationing occurs when borrowers receive a smaller loan than they requested. We use two measures of Type 1 credit rationing to examine whether it is related to gender discrimination in lending. Our results show that women business owners are not likely to be Type 1 rationed. However, newer female-owned firms receive significantly lower loan amounts than requested compared to their male-owned counterparts. We also find that less experienced women receive significantly lower loan amounts compared to less experienced men.

Suggested Citation

  • Naranchimeg Mijid & Caroline Elliott, 2015. "Gender differences in Type 1 credit rationing of small businesses in the US," Cogent Economics & Finance, Taylor & Francis Journals, vol. 3(1), pages 1021553-102, December.
    • Handle: RePEc:taf:oaefxx:v:3:y:2015:i:1:p:1021553
    DOI: 10.1080/23322039.2015.1021553
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    3. Joseph Farhat & Naranchimeg Mijid, 2018. "Do women lag behind men? A matched-sample analysis of the dynamics of gender gaps," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 42(4), pages 682-709, October.
    4. Rocca Espinoza, Salustiano Eduardo & Duréndez Gómez-Guillamón, Antonio, 2017. "Factores determinantes que explican el acceso a la financiación bancaria: un estudio empírico en empresas peruanas," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 1(1), pages 11-34, July.

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