Abstract
Globally, women entrepreneurs are more likely to report access to finance as a constraint to doing business. Previous research shows that women entrepreneurs often face higher rejection rates, smaller loan amounts, higher interest rates, or more stringent guarantor requirements compared to men. These patterns are present in both high- and low-income countries, partly driven by traditional gender norms and the implicit biases these norms foster. Often referred to as unconscious bias, implicit bias can influence behavior without the decision-maker's conscious awareness, making it a persistent barrier for banks aiming to reduce gender-based discrimination in lending.
This project will examine the causal impact of informing loan officers about their potential biases on their lending behavior and loan portfolio performance. We will assess this by first administering an Implicit Association Test (IAT) to loan officers, and then randomly varying the timing of score disclosure. Some officers will receive immediate feedback on their IAT score, while others will receive the feedback later. This will allow us to evaluate whether loan officers alter their behavior after becoming aware of their potential biases.