The Financial Decisions of Immigrant and Native Households: Evidence from Italy

51 Pages Posted: 26 Nov 2018 Last revised: 27 Jan 2020

See all articles by Graziella Bertocchi

Graziella Bertocchi

Università di Modena; Centre for Economic Policy Research (CEPR); Einaudi Institute for Economics and Finance (EIEF); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Marianna Brunetti

Dept. Economics and Finance, University of Rome Tor Vergata; CEFIN

Anzelika Zaiceva

University of Modena and Reggio Emilia; IZA Institute of Labor Economics

Multiple version iconThere are 3 versions of this paper

Date Written: November 2018

Abstract

Using rich Italian data for the period 2006-2014, we document sizeable gaps between native and immigrant households with respect to wealth holdings and financial decisions. Immigrant household heads hold less net wealth than native along the entire wealth distribution. Immigrant status reduces the likelihood of holding risky assets, housing, mortgages, businesses, and valuables, and it increases the likelihood

of financial fragility. Standard regression results are corroborated by a propensity score matching strategy. Years since migration, country of origin, and the pattern of intermarriage also matter. The Great Recession has worsened the condition of immigrants in terms of wealth holdings, home ownership, and financial fragility. Results are unaffected if an immigrant is defined as a non-citizen, rather than a foreign-born.

Keywords: financial portfolios, household finance, immigrants, wealth

JEL Classification: D14, E21, F22, G11, J15

Suggested Citation

Bertocchi, Graziella and Brunetti, Marianna and Zaiceva, Anzelika, The Financial Decisions of Immigrant and Native Households: Evidence from Italy (November 2018). CEPR Discussion Paper No. DP13339. Available at SSRN: https://ssrn.com/abstract=3290532

Graziella Bertocchi (Contact Author)

Università di Modena; Centre for Economic Policy Research (CEPR) ( email )

Einaudi Institute for Economics and Finance (EIEF)

Rome, 00187
Italy

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Marianna Brunetti

Dept. Economics and Finance, University of Rome Tor Vergata ( email )

Via Columbia, 2
Rome, Lazio 00133
Italy

HOME PAGE: http://economia.uniroma2.it/en/def/faculty/178/brunetti-marianna

CEFIN ( email )

via Berengario 51
Modena, modena I-41100
Italy

Anzelika Zaiceva

University of Modena and Reggio Emilia ( email )

Viale A. Allegri 9
Modena, Modena 42121
Italy

IZA Institute of Labor Economics ( email )

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

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