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A Decomposition Approach To Analyzing Racial And Gender Biases

Author

Listed:
  • Wu, Ya
  • Escalante, Cesar L.
  • Gunter, Lewell F.
  • Epperson, James E.

Abstract

This study provides a different perspective in revisiting the racial and gender discrimination issue regarding FSA loans. The Oaxaca-Blinder decomposition method, commonly used in wage discrimination analysis, is employed to determine whether there exist unwarranted differences between the loan amounts approved among racial and gender classes. The findings of this study are inconclusive. As with previous studies, no clear and convincing evidence was found to signal racial or gender discrimination with respect to approved loan amounts to farmer borrowers.

Suggested Citation

  • Wu, Ya & Escalante, Cesar L. & Gunter, Lewell F. & Epperson, James E., 2009. "A Decomposition Approach To Analyzing Racial And Gender Biases," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49308, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea09:49308
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    File URL: http://purl.umn.edu/49308
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    References listed on IDEAS

    as
    1. Escalante, Cesar L. & Brooks, Rodney L. & Epperson, James E. & Stegelin, Forrest E., 2006. "Credit Risk Assessment and Racial Minority Lending at the Farm Service Agency," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(01), April.
    2. Javier Gardeazabal & Arantza Ugidos, 2004. "More on Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 1034-1036, November.
    3. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, pages 279-295.
    4. Bruce L. Ahrendsen & Charles B. Dodson & Bruce L. Dixon & Steven R. Koenig, 2005. "Research on USDA farm credit programs: past, present, and future," Agricultural Finance Review, Emerald Group Publishing, vol. 65(2), pages 165-181, July.
    5. Paternostro, Stefano & Sahn, David E., 1999. "Wage determination and gender discrimination in a transition economy : the case of Romania," Policy Research Working Paper Series 2113, The World Bank.
    6. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    7. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    credit risk; Farm Service Agency; gender bias; Oaxaca-Blinder decomposition; racial bias; Agricultural Finance;

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