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- Title
CREDIT CARD REDLINING.
- Authors
Cohen-Cole, Ethan
- Abstract
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.
- Subjects
CREDIT ratings; DISCRIMINATION in consumer credit; DISCRIMINATION in credit cards; RACE discrimination; DISCRIMINATION in financial services; SOCIOECONOMICS; ECONOMICS
- Publication
Review of Economics & Statistics, 2011, Vol 93, Issue 2, p700
- ISSN
0034-6535
- Publication type
Article
- DOI
10.1162/REST_a_00052