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Immigrant’s legal status, permanence in the destination country and the distribution of consumption expenditure

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  • Matteo Barigozzi
  • Biagio Speciale

Abstract

This paper considers the distribution of consumption expenditures for a large sample of documented and undocumented immigrants in Italy. Using the one-sided and two-sided Kolmogorov-Smirnov tests, we show that the distribution of consumption of immigrants with higher permanence in the host country first-order stochastically dominates the one of immigrants with lower permanence. These distributions are first-order stochastically dominated by the ones of natives with similar characteristics. Apart from differences in the first years since migration, undocumented immigrants show similar consumption distributions to the ones of documented immigrants. All results also hold when correcting for possible immigrants’ misreporting on their legal status.

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File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/54135/1/RePEc_eca_wpaper_2009_019.pdf
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Bibliographic Info

Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers ECARES with number 2009_019.

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Length: 26 p.
Date of creation: 2009
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Publication status: Published by:
Handle: RePEc:eca:wpaper:2009_019

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Keywords: Distribution of consumption expenditures; immigrant’s legal status; Kolmogorov-Smirnov test.;

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  1. Erich Battistin & Richard Blundell & Arthur Lewbel, 2009. "Why Is Consumption More Log Normal than Income? Gibrat's Law Revisited," Journal of Political Economy, University of Chicago Press, vol. 117(6), pages 1140-1154, December.
  2. Kerwin Kofi Charles & Erik Hurst & Nikolai Roussanov, 2009. "Conspicuous Consumption and Race," The Quarterly Journal of Economics, MIT Press, vol. 124(2), pages 425-467, May.
  3. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November.
  4. Borjas, George J, 1995. "Assimilation and Changes in Cohort Quality Revisited: What Happened to Immigrant Earnings in the 1980s?," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 201-45, April.
  5. Borjas, George J & Bratsberg, Bernt, 1996. "Who Leaves? The Outmigration of the Foreign-Born," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 165-76, February.
  6. Giorgio Fagiolo & Lucia Alessi & Matteo Barigozzi & Marco Capasso, 2007. "On the distributional properties of household consumption expenditures. The case of Italy," LEM Papers Series 2007/24, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  7. Dustmann, Christian & Mestres, Josep, 2010. "Remittances and temporary migration," Journal of Development Economics, Elsevier, vol. 92(1), pages 62-70, May.
  8. Slobodan Djajić, 2003. "Assimilation of immigrants: Implications for human capital accumulation of the second generation," Journal of Population Economics, Springer, vol. 16(4), pages 831-845, November.
  9. Jürgen Maurer & André Meier, 2008. "Smooth it Like the 'Joneses'? Estimating Peer-Group Effects in Intertemporal Consumption Choice," Economic Journal, Royal Economic Society, vol. 118(527), pages 454-476, 03.
  10. Schneider, Friedrich G., 2007. "Shadow Economies and Corruption All Over the World: New Estimates for 145 Countries," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 1(9), pages 1-66.
  11. Lewbel, Arthur, 1991. "The Rank of Demand Systems: Theory and Nonparametric Estimation," Econometrica, Econometric Society, vol. 59(3), pages 711-30, May.
  12. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
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