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Immigrant and Native Saving Behaviour in Australia

Author

Listed:
  • Asadul Islam
  • Jaai Parasnis
  • Dietrich Fausten

Abstract

This paper examines whether the differences in the observed savings of immigrant and native households in Australia are related to underlying differences in observable characteristics of the two groups of households or to environmental factors. We use quantile regression and semi-parametric decomposition methods to identify the savings differential, and to isolate the factors that contribute to it. The basic finding is that while income can fully account for the observed difference in immigrant and native savings there are fundamental differences in the saving behaviour of the respective groups. Decomposition analysis suggests that the different characteristics of migrants and natives are responsible for the observed difference in savings. The results also indicate that immigrants have a tendency to save more than natives when compared to Australian-born households of similar characteristics. These findings are consistent with the observed disparities in the wealth holdings of immigrant and native-born households in Australia.

Suggested Citation

  • Asadul Islam & Jaai Parasnis & Dietrich Fausten, 2010. "Immigrant and Native Saving Behaviour in Australia," Monash Economics Working Papers 27-10, Monash University, Department of Economics.
  • Handle: RePEc:mos:moswps:2010-27
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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2010/2710immigrantislamparasnisfausten.pdf
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    References listed on IDEAS

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    1. 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, vol. 85(268), pages 46-59, March.
    2. Deborah A. Cobb-Clark, 2003. "Public policy and the labor market adjustment of new immigrants to Australia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(4), pages 655-681, November.
    3. 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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. ., 2012. "Migration impact assessment: a state of the art," Chapters,in: Migration Impact Assessment, chapter 1, pages 3-62 Edward Elgar Publishing.
    2. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    3. Rob Hodgson & Jacques Poot, 2011. "New Zealand Research on the Economic Impacts of Immigration 2005-2010: Synthesis and Research Agenda," CReAM Discussion Paper Series 1104, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.

    More about this item

    Keywords

    savings; immigrants; native-born; decomposition; Australia;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • D10 - Microeconomics - - Household Behavior - - - General

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