J Michelle Brock, Ralph De Haas, 07 October 2019

Discrimination in access to financial services can prevent women from exploiting their entrepreneurial potential. This column reports on a lab-in-the-field experiment to test for the presence of gender discrimination in small business lending in Turkey. It finds that while unconditional loan approval rates are the same for male and female applicants, there exists a more subtle form of discrimination, with loan officers 30% more likely to make loan approval conditional on the presence of a guarantor when an application appears to come from a female instead of a male entrepreneur. This discrimination is concentrated among young, inexperienced, and gender-biased officers.

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