Decomposing Gender Differences in Bankcard Credit Limits: Evidence from Sole Mortgage Applicants

Nathan Blascak and Anna Tranfaglia
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Anna Tranfaglia: https://www.federalreserve.gov/econres/anna-e-tranfaglia.htm

No 2021-072r1, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Using linked mortgage application and credit bureau data, we document the existence of unconditional and conditional gender gaps in the distribution of total credit card limits for sole mortgage applicants. We estimate that male borrowers have approximately $1,300 higher total credit card limits than female borrowers. This gap is primarily driven by a large gender gap in the right tail of the limit distribution. At the median and in the left tail of the total limit distribution, women’s limits are approximately $100 to $300 higher than men’s. Results from a Kitagawa-Oaxaca-Blinder decomposition show that 87 percent of the gap is explained by differences in the effect of observed characteristics, while 10 percent of the difference is explained by differences in the levels of observed characteristics. The gap is persistent across geographies but has varied over time. Overall, these gender gaps are small in economic magnitude and have changed over time favoring women.

Keywords: Gender; Credit; Credit cards; Decomposition (search for similar items in EconPapers)
JEL-codes: G51 G53 J16 (search for similar items in EconPapers)
Pages: 75 p.
Date: 2021-11-18, Revised 2026-02-23
New Economics Papers: this item is included in nep-ban
Note: Revision
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:2021-72

DOI: 10.17016/FEDS.2021.072r1

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