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The Financial Decisions of Immigrant and Native Households: Evidence from Italy

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  • Bertocchi, Graziella
  • Brunetti, Marianna
  • Zaiceva, Anzelika

Abstract

Using rich Italian data for the period 2006-2014, we document sizeable gaps between native and immigrant households with respect to wealth holdings and financial decisions. Immigrant household heads hold less net wealth than native along the entire wealth distribution. Immigrant status reduces the likelihood of holding risky assets, housing, mortgages, businesses, and valuables, and it increases the likelihood of financial fragility. Standard regression results are corroborated by a propensity score matching strategy. Years since migration, country of origin, and the pattern of intermarriage also matter. The Great Recession has worsened the condition of immigrants in terms of wealth holdings, home ownership, and financial fragility. Results are unaffected if an immigrant is defined as a non-citizen, rather than a foreign-born.

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  • Bertocchi, Graziella & Brunetti, Marianna & Zaiceva, Anzelika, 2020. "The Financial Decisions of Immigrant and Native Households: Evidence from Italy," CEPR Discussion Papers 13339, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:13339
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    Cited by:

    1. Marianna Brunetti & Anzelika Zaiceva, 2023. "Is Self-Employment for Migrants? Evidence from Italy," CEIS Research Paper 563, Tor Vergata University, CEIS, revised 31 Jul 2023.
    2. Beatrice Bertelli & Gianna Boero & Costanza Torricelli, 2021. "The market price of greenness A factor pricing approach for Green Bonds," Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) 0083, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    3. Brunetti, Marianna & Zaiceva, Anzelika, 2023. "Is Self-Employment for Migrants? Evidence from Italy," GLO Discussion Paper Series 1313, Global Labor Organization (GLO).
    4. Syed Hasan & Nazmun Ratna & Shamim Shakur, 2019. "Exchange rate, remittances and expenditure of foreign-bornhouseholds: evidence from Australia," Discussion Papers 1901, School of Economics and Finance, Massey University, New Zealand.
    5. Chiara Pederzoli & Costanza Torricelli, 2019. "The impact of the Fundamental Review of the Trading Book: A preliminary assessment on a stylized portfolio," Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) 0075, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    6. Fleck, Johannes & Monninger, Adrian, 2020. "Culture and portfolios: trust, precautionary savings and home ownership," Working Paper Series 2457, European Central Bank.
    7. Hasan, Syed & Shakur, Shamim & Breunig, Robert, 2021. "Exchange rates and expenditure of households with foreign-born members: Evidence from Australia," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 977-997.
    8. Giulia Bettin, 2019. "Il valore economico dell?immigrazione," PRISMA Economia - Societ? - Lavoro, FrancoAngeli Editore, vol. 2019(2), pages 12-30.
    9. Francesca Arnaboldi, Francesca Gioia, 2019. "Portfolio choice: Evidence from new-borns," Centro Studi di Banca e Finanza (CEFIN) (Center for Studies in Banking and Finance) 0078, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    10. Brunetti, Marianna & Zaiceva, Anzelika, 2023. "Is Self-Employment for Migrants? Evidence from Italy," IZA Discussion Papers 16314, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Immigrants; Household finance; Wealth; Financial portfolios;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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