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Home-ownership and Economic Performance of Immigrants in Germany

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  • Mathias Sinning

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Abstract

This paper analyzes the home-ownership gap between native and immigrant households in Germany, paying particular attention to the assimilation process of immigrant households.A double cohort approach is applied to investigate the effect of the duration of residence in Germany on the homeownership probability of immigrant households.Moreover, focusing on homeowners, differences in the housing quality between native and immigrant households are being examined.The estimates indicate that immigrant households are less likely to own their primary residence than comparable native households. Since the effect of the duration of residence in Germany on the home-ownership probability turns out to be insignificant, the empirical findings suggest that an assimilation process in home-ownership between native and immigrant households does not take place. Finally, differences in housing quality measures become insignificant after controlling for socioeconomic characteristics and contextual factors of native and immigrant households in an interacted model.

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Bibliographic Info

Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung in its series RWI Discussion Papers with number 0045.

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Length: 34 pages
Date of creation: Aug 2006
Date of revision:
Handle: RePEc:rwi:dpaper:0045

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Keywords: Home-ownership; International Migration; Assimilation;

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References

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  1. Anita I. Drever & William A. V. Clark, 2002. "Gaining Access to Housing in Germany: The Foreign Minority Experience," Discussion Papers of DIW Berlin 283, DIW Berlin, German Institute for Economic Research.
  2. Thomas Bauer & Mathias Sinning, 2005. "The Savings Behavior of Temporary and Permanent Migrants in Germany," RWI Discussion Papers 0029, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
  3. 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.
  4. John P. Haisken-DeNew, 2005. "SOEPMENU: A Menu-Driven Stata/SE Interface for Accessing the German Socio-Economic Panel," German Stata Users' Group Meetings 2005 04, Stata Users Group.
  5. Fertig, Michael & Schmidt, Christoph M., 2001. "First- and Second-Generation Migrants in Germany - What Do We Know and What Do People Think," IZA Discussion Papers 286, Institute for the Study of Labor (IZA).
  6. Joachim R. Frick & Markus M. Grabka, 2000. "Personelle Einkommensverteilung und der Einfluß von Imputed Rent," Discussion Papers of DIW Berlin 225, DIW Berlin, German Institute for Economic Research.
  7. 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.
  8. Pitkin, John R. & Myers, Dowell, 1994. "The Specification of Demographic Effects on Housing Demand: Avoiding the Age-Cohort Fallacy," Journal of Housing Economics, Elsevier, vol. 3(3), pages 240-250, September.
  9. Dowell Myers & Seong Lee, 1996. "Immigration cohorts and residential overcrowding in southern California," Demography, Springer, vol. 33(1), pages 51-65, February.
  10. Painter, Gary & Gabriel, Stuart & Myers, Dowell, 2001. "Race, Immigrant Status, and Housing Tenure Choice," Journal of Urban Economics, Elsevier, vol. 49(1), pages 150-167, January.
  11. Schmidt, Christoph M., 1997. "Immigrant performance in Germany: Labor earnings of ethnic German migrants and foreign guest-workers," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(Supplemen), pages 379-397.
  12. Frank P. Stafford & Ngina S. Chiteji, 1999. "Portfolio Choices of Parents and Their Children as Young Adults: Asset Accumulation by African-American Families," American Economic Review, American Economic Association, vol. 89(2), pages 377-380, May.
  13. Coulson, N. Edward, 1999. "Why Are Hispanic- and Asian-American Homeownership Rates So Low?: Immigration and Other Factors," Journal of Urban Economics, Elsevier, vol. 45(2), pages 209-227, March.
  14. Lauren Krivo, 1995. "Immigrant characteristics and Hispanic-Anglo housing inequality," Demography, Springer, vol. 32(4), pages 599-615, November.
  15. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
  16. Dustmann, C, 1993. "Earnings Adjustment of Temporary Migrants," Journal of Population Economics, Springer, vol. 6(2), pages 153-68, May.
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Cited by:
  1. Thomas K. Bauer & Deborah A. Cobb‐Clark & Vincent A. Hildebrand & Mathias G. Sinning, 2011. "A Comparative Analysis Of The Nativity Wealth Gap," Economic Inquiry, Western Economic Association International, vol. 49(4), pages 989-1007, October.
  2. Matthew James Roskruge & Arthur Grimes & Philip McCann & Jacques Poot, 2011. "Housing and Social Capital in New Zealand," ERSA conference papers ersa10p784, European Regional Science Association.
  3. Amelie F. Constant & Rowan Roberts & Klaus F. Zimmermann, 2009. "Ethnic Identity and Immigrant Homeownership," Urban Studies, Urban Studies Journal Limited, vol. 46(9), pages 1879-1898, August.
  4. Brenner, Jan, 2010. "Life-cycle variations in the association between current and lifetime earnings: Evidence for German natives and guest workers," Labour Economics, Elsevier, vol. 17(2), pages 392-406, April.
  5. 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.
  6. Dustmann, Christian & Mestres, Josep, 2011. "Savings, Asset Holdings, and Temporary Migration," IZA Discussion Papers 5498, Institute for the Study of Labor (IZA).
  7. David Duffy, 2007. "The Housing Tenure of Immigrants in Ireland: Some Preliminary Analysis," Papers WP188, Economic and Social Research Institute (ESRI).

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