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Homeownership and Economic Performance of Immigrants in Germany

Author

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  • Mathias Sinning

    (Research School of Economics, Australian National University, Canberra, Australian Capital Territory, 0200, Australia, mathias.sinning@anu.edu.au)

Abstract

This paper investigates the homeownership gap between native and immigrant households in Germany, paying particular attention to the assimilation process of immigrant households. A double cohort model is derived, which circumvents the identification problem for separating age, period and cohort effects and accounts for differences in the effects. The empirical findings suggest that immigrant households are less likely to own their primary residence than comparable native households. Moreover, the duration of residence in Germany does not affect the homeownership probability of immigrants, indicating that an assimilation process in homeownership between native and immigrant households did not take place. This result is largely consistent with the German immigration policy, which has focused predominantly on short-run economic needs and has neglected long-run economic effects of immigration.

Suggested Citation

  • Mathias Sinning, 2010. "Homeownership and Economic Performance of Immigrants in Germany," Urban Studies, Urban Studies Journal Limited, vol. 47(2), pages 387-409, February.
  • Handle: RePEc:sae:urbstu:v:47:y:2010:i:2:p:387-409
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    References listed on IDEAS

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    1. 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.
    2. Zimmermann, Klaus F. (ed.), 2005. "European Migration: What Do We Know?," OUP Catalogue, Oxford University Press, number 9780199257355.
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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. Gobillon, Laurent & Solignac, Matthieu, 2015. "Homeownership of immigrants in France: selection effects related to international migration flows," CEPR Discussion Papers 10975, C.E.P.R. Discussion Papers.
    3. Vincent A. Hildebrand & María Noel Pi Alperin & Philippe Van Kerm, 2017. "Measuring and Accounting for the Deprivation Gap of Portuguese Immigrants in Luxembourg," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(2), pages 288-309, June.
    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. Hanhörster, Heike, 2014. "Bleiben oder gehen? Migrantenviertel als Wohnstandorte türkeistämmiger Eigentümer," Forschungsberichte der ARL: Aufsätze,in: Räumliche Auswirkungen der internationalen Migration, pages 239-259 Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften.
    6. Elisa Barbiano di Belgiojoso & Stefania Maria Lorenza Rimoldi, 2016. "Immigrants' Home-Ownership Decision In Migration Projects. Subjective Determinants And External Constraints," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - Italian Review of Economics, Demography and Statistics, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 70(2), pages 105-116, April-Jun.
    7. Laurent Gobillon & Matthieu Solignac, 2015. "Homeownership of immigrants in France: selection effects related to international migration flows," Working Papers halshs-01233069, HAL.
    8. repec:zbw:rwirep:0095 is not listed on IDEAS
    9. Ihle, Dorothee & Siebert-Meyerhoff, Andrea, 2017. "The older, the richer? A decomposition of wealth inequality by age subgroups," CAWM Discussion Papers 97, University of Münster, Center of Applied Economic Research Münster (CAWM).
    10. 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.
    11. Jan Brenner, 2009. "Life-Cycle Variations in the Association between Current and Lifetime Earnings – Evidence for German Natives and Guest Workers," Ruhr Economic Papers 0095, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    12. Liliya Leopold & Thomas Leopold & Clemens M. Lechner, 2017. "Do Immigrants Suffer More From Job Loss? Unemployment and Subjective Well-being in Germany," Demography, Springer;Population Association of America (PAA), vol. 54(1), pages 231-257, February.
    13. Liliya Leopold & Thomas Leopold & Clemens M. Lechner, 2016. "Do Immigrants Suffer More from Job Loss? Unemployment and Subjective Well-Being in Germany," SOEPpapers on Multidisciplinary Panel Data Research 842, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Boehm, Thomas P. & Schlottmann, Alan M., 2014. "The dynamics of housing tenure choice: Lessons from Germany and the United States," Journal of Housing Economics, Elsevier, vol. 25(C), pages 1-19.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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