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Prospects for immigrant-native wealth assimilation: evidence from financial market participation

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Abstract

Because financial transactions are important for wealth accumulation, and rely on trust and confidence in institutions, the financial market behavior of immigrants can provide important insights into the assimilation process. Compared to the native-born, immigrants are less likely to own savings and checking accounts and these differences tend to persist over time. Our results suggest that a large share of the immigrant-native gap in financial market participation is driven by group differences in education, income, and geographic location. For a given immigrant, the likelihood of financial market participation decreases with higher levels of ethnic concentration in the metropolitan area.

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  • Una Okonkwo Osili & Anna L. Paulson, 2004. "Prospects for immigrant-native wealth assimilation: evidence from financial market participation," Working Paper Series WP-04-18, Federal Reserve Bank of Chicago.
    • Handle: RePEc:fip:fedhwp:wp-04-18
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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. Kristin F. Butcher & Anne Morrison Piehl, 2005. "Why are immigrants' incarceration rates so low? evidence on selective immigration, deterrence, and deportation," Working Paper Series WP-05-19, Federal Reserve Bank of Chicago.
    3. Irene Ferrari, 2020. "The nativity wealth gap in Europe: a matching approach," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 33-77, January.
    4. Deborah A. Cobb‐Clark & Vincent A. Hildebrand, 2006. "The Portfolio Choices of Hispanic Couples," Social Science Quarterly, Southwestern Social Science Association, vol. 87(5), pages 1344-1363, December.
    5. Raúl Hernández-Coss & Chinyere Egwuagu Bun, 2007. "The UK-Nigeria Remittance Corridor : Challenges of Embracing Formal Transfer Systems in a Dual Financial Environment," World Bank Publications - Books, The World Bank Group, number 6654.
    6. Anneke Kosse & David-Jan Jansen, 2011. "Choosing how to pay: the influence of home country habits," DNB Working Papers 328, Netherlands Central Bank, Research Department.
    7. Cobb-Clark, Deborah A. & Hildebrand, Vincent A., 2008. "The Asset Portfolios of Native-Born and Foreign-Born Households," IZA Discussion Papers 3304, Institute of Labor Economics (IZA).
    8. Deborah A. Cobb‐Clark & Vincent A. Hildebrand, 2006. "The Portfolio Choices of Hispanic Couples," Social Science Quarterly, Southwestern Social Science Association, vol. 87(5), pages 1344-1363, December.
    9. Valentina Duque & Natasha V Pilkauskas & Irwin Garfinkel, 2018. "Assets among low-income families in the Great Recession," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-21, February.

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