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

The paper addresses the problem of home mortgage lending discrimination in one of the richest areas of northern Italy, characterized by a strong political support for xenophobic and racist right-wing parties. We conducted interviews with employees of the Varese city hospital to study their perception (or experience) of discriminatory behavior related to home financing. For each individual we have collected information on possible sources of discrimination (e.g., gender, country/region of origin, and family size) and creditworthiness (e.g., income, profession, and age). The analysis follows two steps. The first evaluates self-selection (i.e., 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 and/or area of origin are considered.