Discrimination in lending can occur either in face-to-face decisions or in algorithmic scoring. We provide a workable … interpretation of the courts' legitimate-business-necessity defense of statistical discrimination. We then estimate the extent of … racial/ethnic discrimination in the largest consumer-lending market using an identification afforded by the pricing of …

submitted by women are 18.3% less likely to be approved, with most of the gender effect coming from gender-biased officers …, particularly males. We further randomly informed some officers about official statistics indicating that women have higher … repayment rates than men and find that gender-biased officers in the treatment-group discriminated more against women relative …