Credit to Women Entrepreneurs: The Curse of the Trustworthier Sex

Isabelle Agier, Ariane Szafarz
2010 Social Science Research Network  
Women entrepreneurs are known to receive smaller loans than men while repaying swifter. Does this evidence stem from business needs or from double-standard screening? To address this issue, we develop a new estimation method and apply it to an exceptionally exhaustive database from a Brazilian microfinance institution. The empirical results point to gender discrimination. We indeed show that women entrepreneurs receive smaller loans and incur lower losses for the lender. Additionally, we show
more » ... tionally, we show that reducing the information asymmetry through lending relationship brings no remedy to the curse of the trustworthier sex.
doi:10.2139/ssrn.1718574 fatcat:im2evjny2rbajnwphxtv4kvpji