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A Comparative Analysis of the Nativity Wealth Gap

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  • Bauer, Thomas K.

    ()
    (RWI)

  • Cobb-Clark, Deborah A.

    ()
    (University of Melbourne)

  • Hildebrand, Vincent A.

    ()
    (York University, Canada)

  • Sinning, Mathias

    ()
    (University of Queensland)

Abstract

This paper investigates the source of the gap in the relative wealth position of immigrant households residing in Australia, Germany and the United States. Our results indicate that in Germany and the United States wealth differentials are largely the result of disparity in the educational attainment and demographic composition of the native and immigrant populations, while income differentials are relatively unimportant in understanding the nativity wealth gap. In contrast, the relatively small wealth gap between Australian- and foreign-born households exists because immigrants to Australia do not translate their relative educational and demographic advantage into a wealth advantage. On balance, our results point to substantial cross-national disparity in the economic well-being of immigrant and native families, which is largely consistent with domestic labor markets and the selection policies used to shape the nature of the immigration flow.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2772.

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Length: 52 pages
Date of creation: May 2007
Date of revision:
Publication status: published in: Economic Inquiry, 2011, 11 (4), 989-1007
Handle: RePEc:iza:izadps:dp2772

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Keywords: wealth accumulation; international migration;

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References

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Citations

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Cited by:
  1. Grabka, Markus M. & Marcus, Jan & Sierminska, Eva, 2013. "Wealth Distribution within Couples," IZA Discussion Papers 7637, Institute for the Study of Labor (IZA).
  2. Markus M. Grabka & Jan Marcus & Eva Sierminska, 2013. "Wealth Distribution within Couples and Financial Decision Making," SOEPpapers on Multidisciplinary Panel Data Research 540, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Mathias Sinning, 2011. "Determinants of savings and remittances: empirical evidence from immigrants to Germany," Review of Economics of the Household, Springer, Springer, vol. 9(1), pages 45-67, March.
  4. 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.
  5. Sinning, Mathias, 2007. "Wealth and Asset Holdings of Immigrants in Germany," IZA Discussion Papers 3089, Institute for the Study of Labor (IZA).
  6. 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).
  7. 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.
  8. Denise Doiron & Rochelle Guttmann, 2009. "Wealth Distributions of Migrant and Australian-born Households," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 85(268), pages 32-45, 03.
  9. Knabe, Andreas & Rätzel, Steffen & Thomsen, Stephan L., 2009. "Right-wing extremism and the well-being of immigrants," Discussion Papers 2009/16, Free University Berlin, School of Business & Economics.
  10. 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.
  11. John Gibson & Trinh Le & Steven Stillman, 2007. "What Explains the Wealth Gap between Immigrants and the New Zealand Born?," Working Papers in Economics, University of Waikato, Department of Economics 07/02, University of Waikato, Department of Economics.
  12. HILDEBRAND Vincent & PI ALPERIN Maria Noel & VAN KERM Philippe, 2012. "Measuring and accounting for the deprivation gap of Portuguese immigrants in Luxembourg," CEPS/INSTEAD Working Paper Series 2012-33, CEPS/INSTEAD.

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