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Weizsäcker, Georg; Zankiewicz, Christian (2017): Measuring Applicant Quality to Detect Discrimination In Peer-to-Peer Lending. Collaborative Research Center Transregio 190, Discussion Paper No. 13


We measure the quality of applications for online peer-to-peer lending in Germany and relate it to gender discrimination. The data context allows summarizing application quality as a single numeric measure, the expected internal rate of return. The measure serves as a control variable and is interacted with the applicants' gender. We find that women enjoy higher funding rates than men, mainly because they are less punished when they offer a low application quality. The evidence is consistent with the hypothesis that the predominantly male lenders have a less precise understanding of women's applications than of men's applications.