IDEAS home Printed from https://ideas.repec.org/p/tcd/tcduee/tep1511.html
   My bibliography  Save this paper

Immigration and the demand for life insurance: Evidence from Canada, 1911

Author

Listed:
  • Alan de BROMHEAD

    () (Mansfield College, Oxford University)

  • Karol Jan BOROWIECKI

    () (Department of Economics, Trinity College Dublin)

Abstract

This paper analyses the determinants of the demand for life insurance using sample data from the 1911 Census of Canada. We find that immigrants' demand for life insurance was on average around seven percent lower than that of native born Canadians and varied depending on the time that elapsed since immigration. The results imply substantially lower risk aversion of immigrants and possibly indicate the importance of personal networks for informal risk sharing that could evolve over time. We also find that the value of life insurance held by immigrants increases with time elapsing since immigration and converge towards the value of individuals born in Canada.

Suggested Citation

  • Alan de BROMHEAD & Karol Jan BOROWIECKI, 2011. "Immigration and the demand for life insurance: Evidence from Canada, 1911," Trinity Economics Papers tep1511, Trinity College Dublin, Department of Economics.
  • Handle: RePEc:tcd:tcduee:tep1511
    as

    Download full text from publisher

    File URL: http://www.tcd.ie/Economics/TEP/2011/TEP1511.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. David Stead, 2004. "Risk and risk management in English agriculture, c. 1750-1850," Economic History Review, Economic History Society, vol. 57(2), pages 334-361, May.
    2. Borowiecki, Karol Jan, 2013. "Geographic clustering and productivity: An instrumental variable approach for classical composers," Journal of Urban Economics, Elsevier, vol. 73(1), pages 94-110.
    3. David de la Croix & Frederic Docquier, 2015. "An Incentive Mechanism to Break the Low-skill Immigration Deadlock," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, pages 593-618.
    4. David A. Jaeger & Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Holger Bonin, 2010. "Direct Evidence on Risk Attitudes and Migration," The Review of Economics and Statistics, MIT Press, pages 684-689.
    5. Kantor, Shawn Everett & Fishback, Price V, 1996. "Precautionary Saving, Insurance, and the Origins of Workers' Compensation," Journal of Political Economy, University of Chicago Press, vol. 104(2), pages 419-442, April.
    6. Di Matteo, Livio & Herbert Emery, J. C., 2002. "Wealth and the demand for life insurance: evidence from Ontario, 1892," Explorations in Economic History, Elsevier, vol. 39(4), pages 446-469, October.
    7. 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.
    8. Carter, Susan B. & Sutch, Richard, 1996. "Myth of the Industrial Scrap Heap: A Revisionist View of Turn-of-the-Century American Retirement," The Journal of Economic History, Cambridge University Press, vol. 56(01), pages 5-38, March.
    9. MR Rosenzweig, 2001. "Savings behaviour in low-income countries," Oxford Review of Economic Policy, Oxford University Press, vol. 17(1), pages 40-54, Spring.
    10. David A. Jaeger & Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Holger Bonin, 2010. "Direct Evidence on Risk Attitudes and Migration," The Review of Economics and Statistics, MIT Press, pages 684-689.
    11. Lewis, Frank D, 1989. "Dependents and the Demand for Life Insurance," American Economic Review, American Economic Association, pages 452-467.
    12. repec:cup:apsrev:v:6:y:1912:i:02:p:175-193_00 is not listed on IDEAS
    13. Campbell, Ritchie A, 1980. " The Demand for Life Insurance: An Application of the Economics of Uncertainty," Journal of Finance, American Finance Association, vol. 35(5), pages 1155-1172, December.
    14. Alan G. Green & Mary MacKinnon & Chris Minns, 2002. "Dominion or Republic? Migrants to North America from the United Kingdom, 1870–1910," Economic History Review, Economic History Society, vol. 55(4), pages 666-696, November.
    15. Matteo, Livio Di, 1997. "The Determinants of the Wealth and Asset Holding in Nineteenth-Century Canada: Evidence from Microdata," The Journal of Economic History, Cambridge University Press, vol. 57(04), pages 907-934, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Insurance; welfare; migration; Canada;

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tcd:tcduee:tep1511. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Patricia Hughes). General contact details of provider: http://edirc.repec.org/data/detcdie.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.