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A Comparative Analysis Of The Nativity Wealth Gap

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  • THOMAS K. BAUER
  • DEBORAH A. COBB‐CLARK
  • VINCENT A. HILDEBRAND
  • MATHIAS G. SINNING

Abstract

This paper investigates the source of the gap in the relative wealth position of immigrant households residing in Australia, Germany and the United States. Our results indicate that in German and the United States wealth differentials are largely the result of disparity in the educational attainment and demographic composition of the native and immigrant populations, while income differentials are relatively unimportant in understanding the nativity wealth gap. In contrast, the relatively small wealth gap between Australian and foreign-born households, exists because immigrants to Australia do not translate their relative educational and demographic advantage into a wealth advantage. On balance, our results point to substantial cross-nationality disparity in the economic well-being of immigrant and native families, which is largely consistent with domestic labor markets and the selection policies used to shape the nature of immigration flow.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 49 (2011)
Issue (Month): 4 (October)
Pages: 989-1007

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Handle: RePEc:bla:ecinqu:v:49:y:2011:i:4:p:989-1007

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Citations

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Cited by:
  1. Sinning, Mathias, 2007. "Wealth and Asset Holdings of Immigrants in Germany," IZA Discussion Papers 3089, Institute for the Study of Labor (IZA).
  2. Markus M. Grabka & Jan Marcus & Eva Sierminska, 2013. "Wealth Distribution within Couples and Financial Decision Making," SOEPpapers on Multidisciplinary Panel Data Research 540, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Grabka, Markus M. & Marcus, Jan & Sierminska, Eva, 2013. "Wealth Distribution within Couples," IZA Discussion Papers 7637, Institute for the Study of Labor (IZA).
  4. Andreas Knabe & Steffen Rätzel & Stephan L. Thomsen, 2013. "Right-Wing Extremism and the Well-Being of Immigrants," Kyklos, Wiley Blackwell, vol. 66(4), pages 567-590, November.
  5. Cobb-Clark, Deborah A. & Hildebrand, Vincent A., 2008. "The Asset Portfolios of Native-Born and Foreign-Born Households," IZA Discussion Papers 3304, Institute for the Study of Labor (IZA).
  6. Denise Doiron & Rochelle Guttmann, 2009. "Wealth Distributions of Migrant and Australian-born Households," The Economic Record, The Economic Society of Australia, vol. 85(268), pages 32-45, 03.
  7. HILDEBRAND Vincent & PI ALPERIN Maria Noel & VAN KERM Philippe, 2012. "Measuring and accounting for the deprivation gap of Portuguese immigrants in Luxembourg," CEPS/INSTEAD Working Paper Series 2012-33, CEPS/INSTEAD.
  8. John Gibson & Melanie Morton & Steven Stillman, 2007. "What Explains the Wealth Gap Between Immigrants and the New Zealand Born?," Working Papers 07_12, Motu Economic and Public Policy Research.
  9. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2014. "Household wealth in the euro area: The importance of intergenerational transfers, homeownership and house price dynamics," BCL working papers 91, Central Bank of Luxembourg.
  10. Mathä, Thomas Y. & Porpiglia, Alessandro & Sierminska, Eva, 2011. "The immigrant/native wealth gap in Germany, Italy and Luxembourg," Working Paper Series 1302, European Central Bank.
  11. Mathias Sinning, 2007. "Determinants of Savings and Remittances – Empirical Evidence from Immigrants to Germany," Ruhr Economic Papers 0023, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  12. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2014. "Wealth differences across borders and the effect of real estate price dynamics: Evidence from two household surveys," BCL working papers 90, Central Bank of Luxembourg.

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