Experienced Discrimination in Home Mortgage Lending: A Case of Hospital Employees in Northern Italy

Abstract

This article proposes a framework for the analysis of experienced discrimination in home mortgages. It addresses the problem of home mortgage lending discrimination in one of the richest areas of northern Italy. Employees of a local hospital were interviewed to study their perception (or experience) of discriminatory behavior related to home financing. The analysis follows two steps. The first evaluates self-selection (the probability that individuals apply) and the second focuses on the likelihood that applications are accepted by the bank. Findings show that discrimination is likely to appear when the applicant's nationality is considered. In addition to its findings, the study (a) provides an original econometric model on a twostep procedure to test perceived discrimination and (b) suggests a method and approach that may constitute a point of reference for those willing to study perceived discrimination.

Parallel society: Myth or reality? A question for policy makers

“…In this regard, it should be acknowledged that a preference towards an ethnicity may not always be due to positive sentiments associated with an ethnic group, but it could also relate to negative sentiments -negative stereotypes and prejudice -associated with other (minority) ethnic groups (Fossett, 2006). This ABM research seems to be consistent with empirical studies of economic conditions of residential settling where, for example, Secchi and Seri (2017b) found that gender and family size do not have a significant effect on segregation. Instead, the major factors affecting segregation (discrimination) was found to be nationality (foreign/native) and even the geographical segment of a country people belong to .…”

Majority-Minority Boards of Directors and Decision Making: The Effects of Homophily on Lending Decisions

“…I therefore demonstrate a context in which firms are more likely to promote social justice and reduce economic inequality. These findings suggest increasing representation of minorities in lending decisions may reduce the effects of discrimination observed in other lending settings, such as mortgage lending in Italy (Secchi & Seri, 2017) and microfinance (Patel et al, in press).…”