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Can Immigrants Insure against Shocks as well as the Native-born?

Author

Listed:
  • Asadul Islam

    (Monash University)

  • Steven Stillman

    (Free University of Bozen-Bolzano)

  • Christopher Worswick

    (Carleton University)

Abstract

The impact that an unforeseen event has on household welfare depends on the extent to which household members can take actions to mitigate the direct impact of the shock. In this paper, we use nine years of longitudinal data from the Household Income Labour Dynamics of Australia (HILDA) survey to examine the impact of job displacement and serious health problems on: individual labour supply and incomes, household incomes and food expenditure. We extend on the previous literature by examining whether mitigation strategies and their effectiveness differs for the native-born and immigrants. Immigrants make up nearly one quarter of the Australian population and there are a number of reasons to suspect that they may be less able to mitigate adverse shocks than the native-born.

Suggested Citation

  • Asadul Islam & Steven Stillman & Christopher Worswick, 2016. "Can Immigrants Insure against Shocks as well as the Native-born?," RF Berlin - CReAM Discussion Paper Series 1613, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    • Handle: RePEc:crm:wpaper:1613
    as

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    File URL: https://www.cream-migration.org/publ_uploads/CDP_13_16.pdf
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    References listed on IDEAS

    as
    1. Ruhm, Christopher J, 1991. "Are Workers Permanently Scarred by Job Displacements?," American Economic Review, American Economic Association, vol. 81(1), pages 319-324, March.
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    3. Catalina Amuedo-Dorantes & Susan Pozo, 2002. "Precautionary Saving by Young Immigrants and Young Natives," Southern Economic Journal, John Wiley & Sons, vol. 69(1), pages 48-71, July.
    4. Carroll, Christopher D & Rhee, Byung-Kun & Rhee, Changyong, 1999. "Does Cultural Origin Affect Saving Behavior? Evidence from Immigrants," Economic Development and Cultural Change, University of Chicago Press, vol. 48(1), pages 33-50, October.
    5. Mark Wooden & Simon Freidin & Nicole Watson, 2002. "The Household, Income and Labour Dynamics in Australia (HILDA)Survey: Wave 1," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 339-348, September.
    6. Holger Bonin & Amelie Constant & Konstantinos Tatsiramos & Klaus Zimmermann, 2009. "Native-migrant differences in risk attitudes," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1581-1586.
    7. Martin Browning & Thomas F. Crossley & Joachim Winter, 2014. "The Measurement of Household Consumption Expenditures," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 475-501, August.
    8. Marcus Eliason & Donald Storrie, 2006. "Lasting or Latent Scars? Swedish Evidence on the Long-Term Effects of Job Displacement," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 831-856, October.
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    More about this item

    Keywords

    job loss; income; consumption; labour supply; disability;
    All these keywords.

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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