Arbeitspapier
Numeracy and the quality of on-the-job decisions: Evidence from loan officers
We examine how the numeracy level of employees influences the quality of their on-the-job decisions. Based on an administrative dataset of a retail bank we relate the performance of loan officers in a standardized math test to the accuracy of their credit assessments of small business borrowers. We find that loan officers with a high level of numeracy are more accurate in assessing the credit risk of borrowers. The effect is most pronounced during the pre-crisis credit boom period when it is arguably more difficult to pick out risky borrowers.
- Language
-
Englisch
- Bibliographic citation
-
Series: ZEW Discussion Papers ; No. 17-026
- Classification
-
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Human Capital; Skills; Occupational Choice; Labor Productivity
- Subject
-
behavioral banking
numeracy
loan officers
screening
- Event
-
Geistige Schöpfung
- (who)
-
Brown, Martin
Kirschenmann, Karolin
Spycher, Thomas
- Event
-
Veröffentlichung
- (who)
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Zentrum für Europäische Wirtschaftsforschung (ZEW)
- (where)
-
Mannheim
- (when)
-
2017
- Handle
- URN
-
urn:nbn:de:bsz:180-madoc-433670
- Last update
- 10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Brown, Martin
- Kirschenmann, Karolin
- Spycher, Thomas
- Zentrum für Europäische Wirtschaftsforschung (ZEW)
Time of origin
- 2017
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Numeracy and the quality of on-the-job decisions : evidence from loan officers
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Numeracy and the quality of on-the-job decisions : evidence from loan officers
NUMERACY AND ON‐THE‐JOB PERFORMANCE: EVIDENCE FROM LOAN OFFICERS
Loan officers and soft information production
Financial incentives and loan officer behavior
Senior bank loan officers’ expectations for loan demand: A note
Arrest decisions : what works for the officer?
The predictive power of the senior loan officer survey: Do lending officers know anything special?
Numeracy and Unemployment Duration
Microfinance loan officers before and during Covid-19: Evidence from India
Student Academic Performance, Dropout Decisions and Loan Defaults: Evidence from the Government College Loan Program
Differences in decisions affected by cognitive biases: examining human values, need for cognition, and numeracy