Female business owners pay higher interest rates on corporate loans

Arbeitspapier

We analyze micro-level data from the Danish credit register and find that female business owners pay higher interest rates on corporate loans than male owners. The gender gap is partly explained by differences in firm and loan characteristics. However, an economically and statistically significant gap persists even after flexible machine learning techniques are applied to the data. While the gender gap most likely arises during the negotiation process, we do not find that it depends on market power or the extent to which banks use data-driven approaches to determine interest rates.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Danmarks Nationalbank Working Papers ; No. 179

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Economics of Gender; Non-labor Discrimination
• Subject: Financial sector ; changes in interest rates ; credit risk ; statistical methods

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Martinello, Alessandro Tang-Andersen ; Mønsted, Bjarke ; Matin, Rastin ; Steffensen, Sigurd Anders Muus ; Holm Laursen, Karen
• Event: Veröffentlichung
• (who): Danmarks Nationalbank
• (where): Copenhagen
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/246000
• Last update: 10.03.2025, 11:41 AM CET