Prospects for Immigrant-Native Wealth Assimilation: Evidence from Financial Market Participation

49 Pages Posted: 29 Nov 2004

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: November 2004

Abstract

Because financial transactions are important for wealth accumulation, and rely on trust and confidence in institutions, the financial market behavior of immigrants can provide important insights into the assimilation process. Compared to the native-born, immigrants are less likely to own savings and checking accounts and these differences tend to persist over time. 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: Financial market participation, immigration, wealth, assimilation

JEL Classification: D31, G11, J15

Suggested Citation

Osili, Una Okonkwo and Paulson, Anna L., Prospects for Immigrant-Native Wealth Assimilation: Evidence from Financial Market Participation (November 2004). FRB of Chicago Working Paper No. 2004-18. Available at SSRN: https://ssrn.com/abstract=624187 or http://dx.doi.org/10.2139/ssrn.624187

Una Okonkwo Osili

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

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

Anna L. Paulson (Contact Author)

Federal Reserve Bank of Chicago ( email )

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

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