Accept or Reject: Do Immigrants Have Less Access to Bank Credit? Evidence from Swedish Pawnshop Customers

Marieke Bos ()
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Marieke Bos: Stockholm University Linnaeus Center for Integration Studies - SULCIS, Postal: Stockholm University Linnaeus Center for Integration Studies - SULCIS, Stockholm University, S-10691 Stockholm, Sweden, http://www2.sofi.su.se/~mbo/

No 2012:1, SULCIS Working Papers from Stockholm University, Linnaeus Center for Integration Studies - SULCIS

Abstract: This paper studies to what extent immigrants have less access to main- stream credit than their native counterparts. For this purpose I use a large, unique data set with a panel of Swedish pawnshop customers. The data al- low me to investigate to what extent pawnshop customers actively apply for mainstream bank credit and how successful they are by comparing credit ap- plications from immigrants and natives and the corresponding bank decisions. I do not …nd that immigrants have a di¤erent propensity to apply for main- stream bank credit. However, I do …nd that banks have a lower propensity to grant loans to immigrants from African descent compared to their Nordic-born counterparts. Robustness tests based on data from recent immigrants only suggest that the demand for credit varies with the duration of residence while di¤erences in loan-granting rates are enduring.

Keywords: Consumer credit; lending policy; alternative credit; pawn credit; immigrants (search for similar items in EconPapers)
JEL-codes: C34 C35 D63 D81 G21 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2012-01-24
New Economics Papers: this item is included in nep-ban, nep-lab and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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