Working Paper Revision

Decomposing Gender Differences in Bankcard Credit Limits: Evidence from Sole Mortgage Applicants

Abstract: Using linked mortgage application and credit bureau data, we document the existence of unconditional and conditional gender gaps in the distribution of total credit card limits for sole mortgage applicants. We estimate that male borrowers have approximately $1,300 higher total credit card limits than female borrowers. This gap is primarily driven by a large gender gap in the right tail of the limit distribution. At the median and in the left tail of the total limit distribution, women’s limits are approximately $100 to $300 higher than men’s. Results from a Kitagawa-Oaxaca-Blinder decomposition show that 87 percent of the gap is explained by differences in the effect of observed characteristics, while 10 percent of the difference is explained by differences in the levels of observed characteristics. The gap is persistent across geographies but has varied over time. Overall, these gender gaps are small in economic magnitude and have changed over time favoring women.

JEL Classification: G51; G53; J16;

https://doi.org/10.17016/FEDS.2021.072r1

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: Finance and Economics Discussion Series

Publication Date: 2026-02-23

Number: 2021-072r1

Note: Revision

Related Works

• Working Paper Revision (2026-02-23) : You are here.
• Working Paper Original (2021-11-18) : Decomposing Gender Differences in Bankcard Credit Limits