PIERI-12883 Barriers limiting access to financial services for micro and small entrepreneurs in Bolivia: A randomized lab-field experiment on institutional ethnic discriminatory practices
A field experiment was performed in a controlled laboratory setting to evaluate whether credit
officers reject micro-loan applications based on the ethnicity/gender of potential borrowers. Point
estimates of a mixed-effects logistic regression suggest that, compared to non-indigenous men,
non-indigenous women have two times more chance of loan approval, and indigenous women
have 1.5 more chance of loan approval. The interval results regarding ethnic discrimination are
inconclusive, however some evidence of taste-based discrimination in credit lending that was
favorable for non-indigenous women was found.