Tailored to Fail? Gendered Communication in Credit Markets

Abstract

How do borrowers adjust their communication to a loan officer's gender, and how does it affect credit outcomes? Using a field experiment at a bank, where borrowers described their creditworthiness, we document three patterns. First, female borrowers adjust their language to the officer's gender more than male borrowers. Second, male-targeted language tailoring by female borrowers, however, reduces their likelihood of loan approval by male officers. Third, an information treatment highlighting the negative consequences of such tailoring does not change women's communication behavior. These findings illustrate how social norms constrain women's self-presentation in credit markets, thereby limiting their access to credit.

Keywords: Gender gap, Access to credit, Communication frictions, Entrepreneur, Soft information

JEL Classification: D83, J16, G21, Z13