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ERIC Number: EJ910207
Record Type: Journal
Publication Date: 2011-Jan
Pages: 40
Abstractor: As Provided
ISSN: ISSN-0022-166X
What's in a Picture? Evidence of Discrimination from
Pope, Devin G.; Sydnor, Justin R.
Journal of Human Resources, v46 n1 p53-92 Jan 2011
We find evidence of significant racial disparities in a new type of credit market known as peer-to-peer lending. Loan listings with blacks in the attached picture are 25 to 35 percent less likely to receive funding than those of whites with similar credit profiles. Despite the higher average interest rates charged to blacks, lenders making such loans earn a lower net return compared to loans made to whites with similar credit profiles because blacks have higher relative default rates. These results provide insight into whether the discrimination we find is taste-based or statistical. (Contains 4 figures, 7 tables and 30 footnotes.)
University of Wisconsin Press. 1930 Monroe Street, Madison, WI 53711-2059. Tel: 608-263-0668; Fax: 608-263-1173; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A