Working Paper: NBER ID: w14202
Authors: Alberto F. Alesina; Francesca Lotti; Paolo Emilio Mistrulli
Abstract: The answer is yes. By using a unique and large data set on overdraft contracts between banks and microfirms and self-employed individuals, we find robust evidence that women in Italy pay more for overdraft facilities than men. We could not find any evidence that women are riskier then men. The male/female differential remains even after controlling for a large number of characteristics of the type of business, the borrower and the market structure of the credit market. The result is not driven by women using a different type of bank than men, since the same bank charges different rates to male and female borrowers. Social capital does play a role: high levels of trust loosen credit conditions by lowering interest rates, but this benefit is not evenly distributed, as women benefit from increased social capital less than men.
Keywords: credit; gender discrimination; interest rates; social capital
JEL Codes: G21; J16; J71
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| gender (J16) | interest rates (E43) |
| female borrowers (G51) | interest rates (E43) |
| male guarantors (H81) | interest rates (E43) |
| female guarantors (H81) | interest rates (E43) |
| social capital (Z13) | interest rates (E43) |
| gender + social capital (Z13) | interest rates (E43) |
| credit history (G21) | interest rates (E43) |
| gender (J16) | credit history (G21) |