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The Asset Portfolios of Native-Born and Foreign-Born Households

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Author Info
Cobb-Clark, Deborah () (Australian National University)
Hildebrand, Vincent A. () (York University, Canada)

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Abstract

This paper analyses the net worth and asset portfolios of native- and foreign-born Australian families using HILDA (wave 2) data. Specifically, we estimate a system of asset equations with an adding-up constraint imposed to control for variation in households’ total net worth. Our results indicate that after accounting for differences in human capital and income levels, single immigrants have a wealth advantage of almost $185,000 relative to single native-born individuals. Although the wealth gap between mixed and native-born couples is not statistically significant, immigrant-only couples have approximately $150,000 less wealth on average than native-born couples. Relative to equally wealthy native-born couples, immigrant-only couples hold substantially more of their wealth in their homes and less in the form of vehicles and financial assets. Mixed couples, on the other hand, allocate their wealth across assets in the same way as native-born couples.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3304.

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Length: 2009 pages
Date of creation: Jan 2008
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Publication status: forthcoming in: Economic Record, 2009
Handle: RePEc:iza:izadps:dp3304

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Related research
Keywords: wealth; immigrants; housing;

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Find related papers by JEL classification:
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
J1 - Labor and Demographic Economics - - Demographic Economics

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References listed on IDEAS
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    Other versions:
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