Does There Exist Industrial Discrimination in the Credit Market?——A Study Based on Peer-to-Peer Lending
- HU Jinyan (Shandong University, 250100; Qingdao University, 266071)LI Jianwen (Shandong University, 250100)
- HU Jinyan,LI Jianwen
Online peer-to-peer lending is one of the mainstream services of Internet finance and a new type of credit lending. Different from the traditional credit market, peer-to-peer lending directly matches transactions between borrowers and lenders with the help of Internet technologies without traditional financial intermediaries. Based on the big data collected by renrendai.com, this paper presents that there are significant differences in the likelihood of the bid becoming full and funded among other industries and benchmarks. In other words, there is an occupational preference in Chinese online peer-to-peer lending market. Investors prefer to lend money to the borrowers working in some industries who have high default risk at the expense of security of principal or expected yield, and even if the borrowers who are working in IT, finance industries or law firms can significantly improve the yield of investors, this is not shown in their availability of funds. That is to say, there is occupational discrimination in the peer-to-peer lending market. To resolve the issue, completing the job verification and improving the information quality can reduce occupational preference, but cannot eliminate occupational discrimination in the peer-to-peer lending market.
JEL：G11, G14, G23
- Credit Market, Peer-to-Peer Lending, Occupational Preference, Occupational Discrimination