The Comprehensive Wealth of Older Immigrants and Natives

Social Security Bulletin. 79(4): 25-68, 2019

44 Pages Posted: 25 Nov 2019

See all articles by David A. Love

David A. Love

Williams College - Department of Economics

Lucie Schmidt

Smith College; National Bureau of Economic Research (NBER)

Date Written: November 15, 2019

Abstract

This article compares the retirement preparations of immigrant and native-born Americans aged 51 or older. The authors estimate the present value of future income streams in calculating measures of comprehensive wealth and an annualized equivalent. In addition to some significant differences in median annualized wealth between immigrants and natives, the authors find that the most recent waves of immigrants are more financially vulnerable in retirement than earlier immigration cohorts were at similar ages. With a decomposition analysis, the authors estimate how much of the immigrant-native wealth gap is attributable to differences in observable characteristics and how much is attributable to differences in returns to those characteristics.

Keywords: Immigration; housing; comprehensive wealth; precautionary saving

JEL Classification: G11, G22, D91, E21

Suggested Citation

Love, David A. and Schmidt, Lucie, The Comprehensive Wealth of Older Immigrants and Natives (November 15, 2019). Social Security Bulletin. 79(4): 25-68, 2019, Available at SSRN: https://ssrn.com/abstract=3486278

David A. Love (Contact Author)

Williams College - Department of Economics ( email )

South Academic Building, RM 202
Williamstown, MA 01267
United States

Lucie Schmidt

Smith College ( email )

Northampton, MA 01060
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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