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Wealth and Asset Holdings of Immigrants in Germany

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  • Sinning, Mathias

    ()
    (University of Queensland)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3089.

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Length: 34 pages
Date of creation: Oct 2007
Date of revision:
Handle: RePEc:iza:izadps:dp3089

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Related research

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

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References

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  1. Viral V. Acharya & Iftekhar Hasan & Anthony Saunders, 2006. "Should Banks Be Diversified? Evidence from Individual Bank Loan Portfolios," The Journal of Business, University of Chicago Press, vol. 79(3), pages 1355-1412, May.
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  6. Deborah A. Cobb-Clark & Vincent A. Hildebrand, 2006. "The Wealth And Asset Holdings Of U.S.-Born And Foreign-Born Households: Evidence From Sipp Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(1), pages 17-42, 03.
  7. Thomas K. Bauer & Deborah A. Cobb-Clark & Vincent A. Hildebrand & Mathias Sinning, 2007. "A Comparative Analysis of the Nativity Wealth Gap," CEPR Discussion Papers 554, Centre for Economic Policy Research, Research School of Economics, Australian National University.
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  22. Djajic, Slobodan, 1989. "Migrants in a guest-worker system : A utility maximizing approach," Journal of Development Economics, Elsevier, vol. 31(2), pages 327-339, October.
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Citations

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Cited by:
  1. Mathä, Thomas Y. & Porpiglia, Alessandro & Sierminska, Eva, 2011. "The immigrant/native wealth gap in Germany, Italy and Luxembourg," Working Paper Series 1302, European Central Bank.
  2. Christian Dustmann & Josep Mestres, 2010. "Savings, Asset Holdings, and Temporary Migration," CReAM Discussion Paper Series 1005, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Deborah A. Cobb-Clark & Vincent A. Hildebrand, 2008. "The Asset Portfolios of Native-born and Foreign-born Households," CEPR Discussion Papers 567, Centre for Economic Policy Research, Research School of Economics, Australian National University.

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