Numeracy and the quality of on-the-job decisions: Evidence from loan officers
Auteur(s)
Martin Brown
Accéder
Beschreibung
We examine how the numeracy level of employees influences the quality of their on-the-job decisions. Based on an administrative dataset of a retail bank we relate the performance of loan officers in a standardized math test to the accuracy of their credit assessments of small business borrowers. We find that loan officers with a high level of numeracy are more accurate in assessing the credit risk of borrowers. The effect is most pronounced during the pre-crisis credit boom period when it is arguably more difficult to pick out risky borrowers.
Institution partenaire
Langue
English
Datum
2017
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