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The Savings Behavior of Temporary and Permanent Migrants in Germany

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Author Info
Thomas Bauer ()
Mathias Sinning ()

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Abstract

This paper examines the relative savings position of migrant households in West Germany, paying particular attention to differences between temporary and permanent migrants.Our findings reveal significant differences in the savings rates between foreign-born and German-born individuals. These differences disappear, however, for temporary migrants, if their remittances are taken into account. The results of a decomposition analysis indicate that differences in the savings rate between Germans and foreigners can mainly be attributed to differences in observable characteristics.We do not find strong evidence for an adjustment of the savings rate between immigrants and natives over time.

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Publisher Info
Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung in its series RWI Discussion Papers with number 0029.

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Length: 43 pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:rwi:dpaper:0029

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Related research
Keywords: Savings; Migration;

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Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models

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.:

  1. Martin Browning & Annamaria Lusardi, 1996. "Household Saving: Micro Theories and Micro Facts," Discussion Papers 96-01, University of Copenhagen. Department of Economics.
    Other versions:
  2. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  3. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October. [Downloadable!] (restricted)
  4. George J. Borjas, 1988. "Self-Selection and the Earnings of Immigrants," NBER Working Papers 2248, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Cobb-Clark, Deborah A. & Hildebrand, Vincent, 2002. "The Wealth and Asset Holdings of U.S.-Born and Foreign-Born Households: Evidence from SIPP Data," IZA Discussion Papers 674, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Dustmann, Christian, 1997. "Return migration, uncertainty and precautionary savings," Journal of Development Economics, Elsevier, vol. 52(2), pages 295-316, April. [Downloadable!] (restricted)
  7. Merkle, Lucie & Zimmermann, Klaus F., 1992. "Savings, remittances, and return migration," Economics Letters, Elsevier, vol. 38(1), pages 77-81, January. [Downloadable!] (restricted)
  8. 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.
  9. Shamsuddin, Abul F M & DeVoretz, Don J, 1998. "Wealth Accumulation of Canadian and Foreign-Born Households in Canada," Review of Income and Wealth, Blackwell Publishing, vol. 44(4), pages 515-33, December.
  10. Galor, Oded & Stark, Oded, 1990. "Migrants' Savings, the Probability of Return Migration and Migrants' Performance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 31(2), pages 463-67, May. [Downloadable!] (restricted)
  11. James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation, Yale University. [Downloadable!]
  12. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-21, May. [Downloadable!] (restricted)
  13. Carroll, Christopher D & Rhee, Byung-Kun & Rhee, Changyong, 1999. "Does Cultural Origin Affect Saving Behavior? Evidence from Immigrants," Economic Development and Cultural Change, University of Chicago Press, vol. 48(1), pages 33-50, October.
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Full references

Cited by:
(explanations, 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.)

  1. Mathias Sinning, 2006. "Home-ownership and Economic Performance of Immigrants in Germany," RWI Discussion Papers 0045, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
  2. Kirdar, Murat, 2009. "Source Country Characteristics and Immigrants’ Migration Duration and Saving Decisions," MPRA Paper 13322, University Library of Munich, Germany. [Downloadable!]
  3. Mathias Sinning, 2007. "Determinants of Savings and Remittances – Empirical Evidence from Immigrants to Germany," Ruhr Economic Papers 0023, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
    Other versions:
  4. Pia R. Pinger, 2007. "Come Back or Stay? Spend Here or There? Temporary versus Permanent Migration and Remittance Patterns in the Republic of Moldova," Kiel Advanced Studies Working Papers 438, Kiel Institute for the World Economy. [Downloadable!]
  5. Matloob Piracha & Yu Zhu, 2008. "Precautionary Savings by Natives and Immigrants in Germany," Studies in Economics 0821, Department of Economics, University of Kent. [Downloadable!]
    Other versions:
  6. Don J. DeVoretz & Florin P. Vadean, 2005. "A Model of Foreign-Born Transfers: Evidence from Canadian Micro Data," IZA Discussion Papers 1714, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Don J. DeVoretz & Florin P. Vadean, 2006. "Social Relations and Remittances: Evidence from Canadian Micro Data," IZA Discussion Papers 2501, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Sayema H. Bidisha, . "Saving Behaviour of the Immigrants and Ethnic Minorities in the UK: Evidence from Panel Data," Discussion Papers 08/08, University of Nottingham, School of Economics. [Downloadable!]
  9. Nikolaus Bartzsch, 2007. "Precautionary Saving and Income Uncertainty in Germany: New Evidence from Microdata," SOEPpapers 21, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  10. Alessandra Venturini & Gil S. Epstein, 2006. "Migration, effort, and voter sentiment towards temporary migration," CHILD Working Papers wp18_06, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
  11. Jana Bruder & Katharina Frosch, 2006. "Foreign Nationality and Age - A Double Drawback for Reemployment in Germany?," Thuenen-Series of Applied Economic Theory 63, University of Rostock, Institute of Economics, Germany. [Downloadable!]
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