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 of discriminatory behavior related to home financing. The analysis follows two steps. The first evaluates self-selection 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 provides an original econometric model on a two-step procedure to test perceived discrimination and suggests a method and approach that may constitute a point of reference for those willing to study perceived discrimination.