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A Comparative Analysis of the Nativity Wealth Gap

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  • Thomas K. Bauer,

    ()

  • Deborah A. Cobb-Clark
  • Vincent Hildebrand
  • Mathias Sinning

    ()

Abstract

This paper investigates the source of the gap in the relative wealth position of immigrant households residing in Australia, Germany and the United States. Our results indicate that in Germany and the United States wealth differentials are largely the result of disparity in the educational attainment and demographic composition of the native and immigrant populations, while income differentials are relatively unimportant in understanding the nativity wealth gap. In contrast, the relatively small wealth gap between Australian- and foreign- born households exists because immigrants to Australia do not translate their relative educational and demographic advantage into a wealth advantage. On balance, our results point to substantial cross-national disparity in the economic well-being of immigrant and native families, which is largely consistent with domestic labor markets and the selection policies used to shape the nature of the immigration flow.

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Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0006.

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Length: 54 pages
Date of creation: Apr 2007
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Handle: RePEc:rwi:repape:0006

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Keywords: International migration; wealth accumulation;

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Citations

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Cited by:
  1. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2014. "Household wealth in the euro area: The importance of intergenerational transfers, homeownership and house price dynamics," BCL working papers 91, Central Bank of Luxembourg.
  2. Grabka, Markus M. & Marcus, Jan & Sierminska, Eva, 2013. "Wealth Distribution within Couples," IZA Discussion Papers 7637, Institute for the Study of Labor (IZA).
  3. Andreas Knabe & Steffen Rätzel & Stephan L. Thomsen, 2009. "Right-Wing Extremism and the Well-Being of Immigrants," CESifo Working Paper Series 2841, CESifo Group Munich.
  4. Mathias Sinning, 2007. "Wealth and Asset Holdings of Immigrants in Germany," Ruhr Economic Papers 0030, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  5. Mathias Sinning, 2011. "Determinants of savings and remittances: empirical evidence from immigrants to Germany," Review of Economics of the Household, Springer, vol. 9(1), pages 45-67, March.
  6. 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.
  7. Denise Doiron & Rochelle Guttmann, 2009. "Wealth Distributions of Migrant and Australian-born Households," The Economic Record, The Economic Society of Australia, vol. 85(268), pages 32-45, 03.
  8. GRABKA Markus & MARCUS Jan & SIERMINSKA Eva, 2013. "Wealth distribution within couples and financial decision making," CEPS/INSTEAD Working Paper Series 2013-02, CEPS/INSTEAD.
  9. John Gibson & Melanie Morton & Steven Stillman, 2007. "What Explains the Wealth Gap Between Immigrants and the New Zealand Born?," Working Papers 07_12, Motu Economic and Public Policy Research.
  10. Thomas Y. Mathä & Alessandro Porpiglia & Eva Sierminska, 2011. "The Immigrant/Native Wealth Gap in Germany, Italy and Luxembourg," BCL working papers 57, Central Bank of Luxembourg.
  11. Cobb-Clark, Deborah A. & Hildebrand, Vincent A., 2008. "The Asset Portfolios of Native-Born and Foreign-Born Households," IZA Discussion Papers 3304, Institute for the Study of Labor (IZA).
  12. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2014. "Wealth differences across borders and the effect of real estate price dynamics: Evidence from two household surveys," BCL working papers 90, Central Bank of Luxembourg.

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