Mortgages, immigrants and discrimination: An analysis of the interest rates in Spain
In this paper, we use a unique data set on granted mortgages to investigate whether immigrant and native borrowers are treated differently by lenders in the Spanish mortgage market. We observe that immigrant borrowers are charged substantially higher interest rates in their mortgages than their native counterparts. These differentials remain high and significant even after controlling for differences in creditworthiness and other factors. Further analyses based on the decomposition of the native–immigrant interest rate gap reveal that the differences in observable factors only account for 12% of the gap. The empirical evidence we find here suggests that these differentials are due to discrimination.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 45 (2014)
Issue (Month): C ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/regec|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2000.
"Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools,"
NBER Working Papers
7831, National Bureau of Economic Research, Inc.
- Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
- Hanson, Andrew & Hawley, Zackary, 2011.
"Do landlords discriminate in the rental housing market? Evidence from an internet field experiment in US cities,"
Journal of Urban Economics,
Elsevier, vol. 70(2), pages 99-114.
- Hanson, Andrew & Hawley, Zackary, 2011. "Do landlords discriminate in the rental housing market? Evidence from an internet field experiment in US cities," Journal of Urban Economics, Elsevier, vol. 70(2-3), pages 99-114, September.
- Andrew Hanson & Zackary Hawley, 2011. "Do Landlords Discriminate in the Rental Housing Market? Evidence from an Internet Field Experiment in U.S. Cities," Experimental Economics Center Working Paper Series 2011-05, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
- Antonio Accetturo & Francesco Manaresi & Sauro Mocetti & Elisabetta Olivieri, 2012.
"Don't stand so close to me: the urban impact of immigration,"
Temi di discussione (Economic working papers)
866, Bank of Italy, Economic Research and International Relations Area.
- Accetturo, Antonio & Manaresi, Francesco & Mocetti, Sauro & Olivieri, Elisabetta, 2014. "Don't stand so close to me: The urban impact of immigration," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 45-56.
- Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
- David G. Blanchflower & Phillip B. Levine & David J. Zimmerman, 1998.
"Discrimination in the Small Business Credit Market,"
NBER Working Papers
6840, National Bureau of Economic Research, Inc.
- David G. Blanchflower & Phillip B. Levine & David J. Zimmerman, 2003. "Discrimination in the Small-Business Credit Market," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 930-943, November.
- Alberto F. Alesina & Francesca Lotti & Paolo Emilio Mistrulli, 2013.
"Do Women Pay More For Credit? Evidence From Italy,"
Journal of the European Economic Association,
European Economic Association, vol. 11, pages 45-66, 01.
- Mitchell A. Petersen & Raghuram G. Rajan, 1995.
"The Effect of Credit Market Competition on Lending Relationships,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 110(2), pages 407-443.
- Mitchell A. Petersen & Raghuram G. Rajan, 1994. "The Effect of Credit Market Competition on Lending Relationships," NBER Working Papers 4921, National Bureau of Economic Research, Inc.
- Giorgio Albareto & Paolo Mistrulli, 2011.
"Bridging the gap between migrants and the banking system,"
Temi di discussione (Economic working papers)
794, Bank of Italy, Economic Research and International Relations Area.
- Albareto, G. & Mistrulli, P.E., 2010. "Bridging the gap between migrants and the banking system," MPRA Paper 26476, University Library of Munich, Germany.
- Degryse, H.A. & Ongena, S., 2006.
"The Impact of Competition on Bank Orientation,"
2006-68, Tilburg University, Center for Economic Research.
- Black, Harold A. & Boehm, Thomas P. & DeGennaro, Ramon P., 2003.
"Is there discrimination in mortgage pricing? The case of overages,"
Journal of Banking & Finance,
Elsevier, vol. 27(6), pages 1139-1165, June.
- Harold A. Black & Thomas P. Boehm & Ramon P. DeGennaro, 2001. "Is there discrimination in mortgage pricing? the case of overages," FRB Atlanta Working Paper 2001-4, Federal Reserve Bank of Atlanta.
- repec:uwp:jhriss:v:8:y:1973:i:4:p:436-455 is not listed on IDEAS
- Marsha Courchane & David Nickerson, 1997. "Discrimination Resulting from Overage Practices," Journal of Financial Services Research, Springer;Western Finance Association, vol. 11(1), pages 133-151, February.
- Albert Saiz & Susan Wachter, 2011.
"Immigration and the Neighborhood,"
American Economic Journal: Economic Policy,
American Economic Association, vol. 3(2), pages 169-188, May.
- Marsha J. Courchane, 2007. "The Pricing of Home Mortgage Loans to Minority Borrowers: How Much of the APR Differential Can We Explain?," Journal of Real Estate Research, American Real Estate Society, vol. 29(4), pages 399-440.
- Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
- Emily Oster, 2013. "Unobservable Selection and Coefficient Stability: Theory and Validation," NBER Working Papers 19054, National Bureau of Economic Research, Inc.
- David Neumark, 1987.
"Employers' discriminatory behavior and the estimation of wage discrimination,"
Special Studies Papers
227, Board of Governors of the Federal Reserve System (U.S.).
- David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:45:y:2014:i:c:p:22-32. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.