Discrimination Expectations in the Credit Market: Survey Evidence from India

Abstract

We present results from a representative survey and an information experiment to provide evidence on discrimination expectations. We find that discrimination based on gender, caste, and religion is perceived to be widespread in society overall and in the credit market. Support for affirmative action is shaped by the extent of expected discrimination against a group and by respondents' own group identity and social attitudes. Information about the true extent of discrimination is effective in correcting inaccurate discrimination expectations but has no meaningful impact on support for policies designed to reduce discrimination in practice.