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Appears in Collections:Economics Journal Articles
Peer Review Status: Refereed
Title: Discrimination in the small-business credit market
Author(s): Blanchflower, David
Levine, Phillip B
Zimmerman, David J
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Issue Date: Nov-2003
Date Deposited: 12-Dec-2012
Citation: Blanchflower D, Levine PB & Zimmerman DJ (2003) Discrimination in the small-business credit market. Review of Economics and Statistics, 85 (4), pp. 930-943.
Abstract: We use data from the 1993 and 1998 National Surveys of Small Business Finances to examine the existence of racial discrimination in the small-business credit market. We conduct an econometric analysis of loan outcomes by race and find that black-owned small businesses are about twice as likely to be denied credit even after controlling for differences in creditworthiness and other factors. A series of specification checks indicates that this gap is unlikely to be explained by omitted variable bias. These results indicate that the racial disparity in credit availability is likely caused by discrimination.
DOI Link: 10.1162/003465303772815835
Rights: Publisher policy allows this work to be made available in this repository. Published in Review of Economics and Statistics, November 2003, Vol. 85, No. 4, Pages 930-943, © 2003 by President and Fellows of Harvard College and the Massachusetts Institute of Technology. The original publication is available at

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