Gender and Financial Misconduct on Fintech: Experimental Evidence from Mobile Money in Ghana

Abstract

We construct a census of the market for mobile money in village Ghana and estimate that 1 out of every 4 mobile money transactions is overcharged relative to mandated rates. In an experiment, we randomize the matches between vendors and customers, finding strong evidence of “gender misconduct gap”: female vendors are +37% more likely to commit such misconduct relative to male vendors. Misconduct is discriminatory and asymmetric: female customers are relatively more likely to suffer misconduct, and while female vendors discriminate against customers of their gender, male vendors favor their gender. We present evidence suggesting gender differences in empowerment, and beliefs about gender among vendors and customers as relevant mechanisms. Several other possible mechanisms are ruled out empirically. Our findings raise important issues at the intersection of economics and culture, and indicate that preexisting social distance (particularly unequal gender empowerment and gendered beliefs) can incentivize undesirable market outcomes and may be an important source of local financial market frictions.