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The Asset Portfolios of Native‐born and Foreign‐born Australian Households

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  • DEBORAH A. COBB‐CLARK
  • VINCENT A. HILDEBRAND

Abstract

This paper analyses the net worth and asset portfolios of native‐ and foreign‐born Australian families. Specifically, we estimate a system of asset equations with an adding‐up constraint imposed to control for diversity in household wealth. We find that the wealth of mixed and native‐born couples is not significantly different; however, immigrant‐only couples have approximately $162 000 less wealth than native‐born couples. Relative to equally wealthy native‐born couples, immigrant‐only couples hold substantially more wealth in their homes and less in the form of vehicles. Mixed couples and single individuals allocate their wealth across assets in the same way their native‐born counterparts.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:ecorec:v:85:y:2009:i:268:p:46-59
    DOI: 10.1111/j.1475-4932.2008.00528.x
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    Cited by:

    1. Graziella Bertocchi & Marianna Brunetti & Anzelika Zaiceva, 2023. "The Financial Decisions of Immigrant and Native Households: Evidence from Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 117-174, March.
    2. Wei-Bin Zhang, 2016. "Exchange Values of Gold, Land, Physical Capital, and Human Capital in a Neoclassical Growth Model," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 265-286, September.
    3. 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.
    4. Cobb-Clark, Deborah A. & Kassenboehmer, Sonja C. & Sinning, Mathias G., 2016. "Locus of control and savings," Journal of Banking & Finance, Elsevier, vol. 73(C), pages 113-130.
    5. Whelan, Stephen & Atalay, Kadir & Hayward, Richard Donald, 2018. "Asset portfolio retirement decisions: the role of the tax and transfer system," SocArXiv akj8w, Center for Open Science.
    6. Roger Wilkins, 2021. "Economic Wellbeing," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 469-481, December.
    7. repec:zbw:rwirep:0455 is not listed on IDEAS
    8. Catalina Amuedo-Dorantes & Susan Pozo, 2015. "The impact of the recession on the wealth of older immigrant and native households in the United States," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-27, December.
    9. Vaira-Lucero, Matias & Nahm, Daehoon & Tani, Massimiliano, 2012. "Socioeconomic Assimilation and Wealth Accumulation of Migrants in Australia," IZA Discussion Papers 6969, Institute of Labor Economics (IZA).
    10. Asadul Islam & Jaai Parasnis & Dietrich Fausten, 2013. "Do Immigrants Save Less than Natives? Immigrant and Native Saving Behaviour in Australia," The Economic Record, The Economic Society of Australia, vol. 89(284), pages 52-71, March.
    11. Deborah A. Cobb-Clark & Sonja C. Kassenboehmer & Mathias G. Sinning, 2013. "Locus of Control and Savings," Ruhr Economic Papers 0455, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    12. Johnston, David W. & Kassenboehmer, Sonja C. & Shields, Michael A., 2016. "Financial decision-making in the household: Exploring the importance of survey respondent, health, cognitive ability and personality," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 42-61.
    13. Nonna Kushnirovich, 2016. "Immigrant investors in financial markets: modes of financial behavior," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(6), pages 992-1006, November.
    14. Graziella Bertocchi & Marianna Brunetti & Anzelika Zaiceva, 2018. "The Financial Decisions of Immigrant and Native Households: Evidence from Italy," Department of Economics 0138, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    15. Andrew C. Worthington, 2009. "Household Asset Portfolio Diversification: Evidence from the Household, Income and Labour Dynamics in Australia (HILDA) Survey," Discussion Papers in Finance finance:200908, Griffith University, Department of Accounting, Finance and Economics.

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