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Does Cultural Origin Affect Saving Behavior? Evidence from Immigrants

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  • Carroll, Christopher D
  • Rhee, Byung-Kun
  • Rhee, Changyong

Abstract

Because efforts to explain international saving differentials using traditional economic variables have not been very successful (Bosworth, 1993), some economists have proposed that national saving differences reflect cultural differences. We attempt to test that hypothesis by using data from the US Census to examine whether immigrants to the US from high-saving countries tend to save more than immigrants from low-saving countries. While we do find highly statistically significant differences in immigrants' saving behavior by country of origin, those differences do not match up with the differences in national saving rates. In particular, immigrants from high-saving Asian countries do not save more than other immigrants.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 48 (1999)
Issue (Month): 1 (October)
Pages: 33-50

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Handle: RePEc:ucp:ecdecc:v:48:y:1999:i:1:p:33-50

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  1. David E. Bloom & Morley Gunderson, 1991. "An Analysis of the Earnings of Canadian Immigrants," NBER Chapters, in: Immigration, Trade and the Labor Market, pages 321-342 National Bureau of Economic Research, Inc.
  2. Christopher D. Carroll, 1992. "How does future income affect current consumption?," Working Paper Series / Economic Activity Section, Board of Governors of the Federal Reserve System (U.S.) 126, Board of Governors of the Federal Reserve System (U.S.).
  3. Bloom, D.E. & Gunderson, M., 1989. "An Analysis Of The Earnings Of Canadian Immigrants," Discussion Papers, Columbia University, Department of Economics 1989_18, Columbia University, Department of Economics.
  4. repec:fth:coluec:437 is not listed on IDEAS
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