The Asset Portfolios of Native-Born and Foreign-Born Households

36 Pages Posted: 22 Jan 2008

See all articles by Deborah A. Cobb-Clark

Deborah A. Cobb-Clark

School of Economics, University of Sydney; IZA Institute of Labor Economics

Vincent A. Hildebrand

York University - Department of Economics; CEPS/INSTEAD

Multiple version iconThere are 2 versions of this paper

Abstract

This paper analyses the net worth and asset portfolios of native- and foreign-born Australian families using HILDA (wave 2) data. Specifically, we estimate a system of asset equations with an adding-up constraint imposed to control for variation in households' total net worth. Our results indicate that after accounting for differences in human capital and income levels, single immigrants have a wealth advantage of almost $185,000 relative to single native-born individuals. Although the wealth gap between mixed and native-born couples is not statistically significant, immigrant-only couples have approximately $150,000 less wealth on average than native-born couples. Relative to equally wealthy native-born couples, immigrant-only couples hold substantially more of their wealth in their homes and less in the form of vehicles and financial assets. Mixed couples, on the other hand, allocate their wealth across assets in the same way as native-born couples.

Keywords: Wealth, immigrants, housing

JEL Classification: J61, G11, J1

Suggested Citation

Cobb-Clark, Deborah A. and Hildebrand, Vincent Alexandre, The Asset Portfolios of Native-Born and Foreign-Born Households. Available at SSRN: https://ssrn.com/abstract=1086214 or http://dx.doi.org/10.2139/ssrn.1086214

Deborah A. Cobb-Clark (Contact Author)

School of Economics, University of Sydney ( email )

606 Social Sciences Bldg. (A02)
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IZA Institute of Labor Economics

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Vincent Alexandre Hildebrand

York University - Department of Economics ( email )

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Canada
416-736-2100 x 88591 (Phone)
416-487-6852 (Fax)

CEPS/INSTEAD ( email )

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Luxembourg

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