Understanding Immigrant-Native Differences in Financial Market Participation

Networks Financial Institute Working Paper No. 2007-WP-19

50 Pages Posted: 8 Dec 2007

See all articles by Una Okonkwo Osili

Una Okonkwo Osili

Indiana University - Purdue University Indianapolis (IUPUI)

Anna L. Paulson

Federal Reserve Bank of Chicago

Date Written: August 1, 2007

Abstract

The goal of this paper is to investigate access to financial services and prospects for the wealth assimilation of immigrants by studying the financial market behavior of U.S. immigrants, compared to the native-born. Compared to similar natives, immigrants are less likely to own a wide range of financial assets, including savings and checking accounts. We find that lower rates of financial market participation tend to persist even for immigrants who have lived in the U.S. for several years. 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.

Keywords: Immigrants, financial markets, ethnic concentration, location

Suggested Citation

Osili, Una Okonkwo and Paulson, Anna L., Understanding Immigrant-Native Differences in Financial Market Participation (August 1, 2007). Networks Financial Institute Working Paper No. 2007-WP-19. Available at SSRN: https://ssrn.com/abstract=1060841 or http://dx.doi.org/10.2139/ssrn.1060841

Una Okonkwo Osili (Contact Author)

Indiana University - Purdue University Indianapolis (IUPUI) ( email )

1309 E. 10th St.
Bloomington, IN 47405
United States

Anna L. Paulson

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States
312 322 2169 (Phone)

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