Credit Card Redlining
The Review of Economics and Statistics
2011
This paper evaluates the presence of racial disparities in the issuance of consumer credit. Using a database of credit histories, I link location-based information on race with individual credit files. After controlling for place-specific factors such as housing vacancy rates and general population demographics, I find qualitatively large differences in the amount of credit offered to similarly qualified applicants living in black versus white areas. High data quality allows distinguishing between issuer-provision (supply) and utilization of credit (demand). Additional estimates using information on payday lending provide support for idea that issuers condition lending on location.
- DOI
- 10.1162/rest_a_00052
- Volume
- 93 (2)
- Pages
- 700-713
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref