Tag: disparate impact

Big Data’s Disparate Impact

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This paper examines concerns about big data’s disparate impact risk from the perspective of American antidiscrimination law, more specifically, through Title VII’s prohibition of discrimination in employment. The paper also calls out the legal and political difficulties of addressing and remedying this type of discrimination, in particular, the tension between the two major theories underlying antidiscrimination law: anticlassification and antisubordination.

104 California Law Review 671 (2016)

Solon Barocas, Andrew D. Selbst

Predictably Unequal? The Effects of Machine Learning on Credit Markets

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This paper uses various types of machine learning models to predict credit risk using historical mortgage data. It finds gains in predictiveness that would likely lead to an increase in approvals across all demographic groups, but that average prices could increase for African-American and Hispanic borrowers due to differences in risk calculations.

Andreas Fuster, Paul Goldsmith-Pinkham, Tarun Ramadorai, and Ansgar Walther.

Consumer Lending Discrimination in the FinTech Era

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This paper evaluates differentials between borrowers of different races in loan approval rates and pricing between fintech and traditional mortgage lenders. The paper finds that unexplained pricing differentials are smaller among technology-heavy lenders and that such differentials overall have declined as the mortgage industry as increased reliance on algorithmic lending in recent years.

UC Berkeley Public Law Research Paper

Robert Bartlett, Adair Morse, Richard Stanton, Nancy Wallace.

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