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Wealth and Asset Holdings of Immigrants in Germany

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  • Mathias Sinning

Abstract

This paper examines the relative wealth position and the portfolio choices of immigrants in Germany. The empirical findings reveal significant differences in overall wealth and various wealth components between German natives and immigrants. Differences in real estate constitute the major part of different levels of net worth, indicating that disparities in home-ownership rates are responsible for the main part of the overall wealth gap. Moreover, migrants' degree of portfolio diversification is significantly lower than that of comparable natives. The results of a decomposition analysis suggest that differences in wealth and asset holdings may be explained by disparity in educational attainment to a sizable extent, while the effects of income differentials and differences in demographic characteristics are insignificant.

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Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 59.

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Length: 31 p.
Date of creation: 2007
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp59

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Keywords: International migration; wealth accumulation; decomposition analysis; multiple imputation;

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References

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Citations

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Cited by:
  1. 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, Central Bank of Luxembourg 90, Central Bank of Luxembourg.
  2. Dustmann, Christian & Mestres, Josep, 2011. "Savings, Asset Holdings, and Temporary Migration," IZA Discussion Papers 5498, Institute for the Study of Labor (IZA).
  3. 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).
  4. 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, Central Bank of Luxembourg 91, Central Bank of Luxembourg.
  5. Mathä, Thomas Y. & Porpiglia, Alessandro & Sierminska, Eva, 2011. "The immigrant/native wealth gap in Germany, Italy and Luxembourg," Working Paper Series, European Central Bank 1302, European Central Bank.

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