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

37 Pages Posted: 1 Feb 2019

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, but only above the median of the wealth distribution, with housing as the main driver. Immigrant status reduces the likelihood of holding risky assets, housing, mortgages, businesses, and valuables, while it increases the likelihood of financial fragility. Years since migration, countries 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.

Keywords: immigrants, household finance, wealth, financial portfolios, Great Recession

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

Suggested Citation

Bertocchi, Graziella and Brunetti, Marianna and Zaiceva, Anzelika, The Financial Decisions of Immigrant and Native Households: Evidence from Italy (November 2018). CEIS Working Paper No. 449. Available at SSRN: https://ssrn.com/abstract=3322614 or http://dx.doi.org/10.2139/ssrn.3322614

Graziella Bertocchi

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 (Contact Author)

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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