Advanced Search
MyIDEAS: Login to save this paper or follow this series

Socioeconomic Assimilation and Wealth Accumulation of Migrants in Australia

Contents:

Author Info

  • Vaira-Lucero, Matias

    ()
    (Macquarie University, Sydney)

  • Nahm, Daehoon

    ()
    (Macquarie University, Sydney)

  • Tani, Massimiliano

    ()
    (IZA)

Abstract

This paper investigates to what extent the wealth accumulation of immigrants is explained by their degree of assimilation, defined as the immigrants' capacity to become more similar over time to the local people in terms of their norms, values, behaviours, and socioeconomic characteristics. The existing practice to measure assimilation is the use of a time-dimensioned variable like years since migration, which reflects the individual's adaptation to the host country through the implied acquisition of relevant skills and experience. We complement this approach by defining assimilation on the basis of migrants' subjective assessments of integration within the community. To do so, we exploit the rich information collected by the Household Income and Labour Dynamics in Australia Survey (HILDA). In particular, we explore the possible relationship between migrants' savings and assimilation estimating several models, from a pooled OLS to panel data models such as random effect and population average. We find that assimilation has a significant positive effect on wealth accumulation, but in different degrees depending on migrants origins and the type of assets. Understanding migrants' wealth and their perceived degree of assimilation is relevant to understand the supply of domestic savings and their variability. It also carries policy implications on what could be done to affect migrants' sense of assimilation and connected economic behaviour.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp6969.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6969.

as in new window
Length: 24 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6969

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: precautionary savings; net worth; uncertainty; migrants' assimilation;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Catalina Amuedo-Dorantes & Susan Pozo, 2002. "Precautionary Saving by Young Immigrants and Young Natives," Southern Economic Journal, Southern Economic Association, vol. 69(1), pages 48-71, July.
  2. Carroll, Christopher D, 1997. "Buffer-Stock Saving and the Life Cycle/Permanent Income Hypothesis," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(1), pages 1-55, February.
  3. Schaeffer, Peter V, 1995. "The Work Effort and the Consumption of Immigrants as a Function of Their Assimilation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(3), pages 625-42, August.
  4. Christopher F Baum, 2006. "An Introduction to Modern Econometrics using Stata," Stata Press books, StataCorp LP, number imeus, March.
  5. Miles S. Kimball, 1991. "Standard Risk Aversion," NBER Technical Working Papers 0099, National Bureau of Economic Research, Inc.
  6. Barry R. Chiswick & Paul W. Miller, 2012. "Negative and Positive Assimilation, Skill Transferability, and Linguistic Distance," Journal of Human Capital, University of Chicago Press, University of Chicago Press, vol. 6(1), pages 35 - 55.
  7. Timothy Hatton & Andrew Leigh, 2011. "Immigrants assimilate as communities, not just as individuals," Journal of Population Economics, Springer, Springer, vol. 24(2), pages 389-419, April.
  8. Guiso, Luigi & Jappelli, Tullio & Terlizzese, Daniele, 1994. "Income Risk, Borrowing Constraints and Portfolio Choice," CEPR Discussion Papers, C.E.P.R. Discussion Papers 888, C.E.P.R. Discussion Papers.
  9. Antecol, Heather & Kuhn, Peter J. & Trejo, Stephen, 2003. "Assimilation via Prices or Quantities? Labor Market Institutions and Immigrant Earnings Growth in Australia, Canada, and the United States," IZA Discussion Papers 802, Institute for the Study of Labor (IZA).
  10. Deborah A. Cobb-Clark & Vincent A. Hildebrand, 2009. "The Asset Portfolios of Native-born and Foreign-born Australian Households," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 85(268), pages 46-59, 03.
  11. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, Elsevier, vol. 52(2), pages 295-316, April.
  12. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 3(4), pages 463-89, October.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6969. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.