Wealth and Asset Holdings of Immigrants in Germany

34 Pages Posted: 6 Nov 2007

See all articles by Mathias Sinning

Mathias Sinning

Australian National University (ANU) - Crawford School of Public Policy

Date Written: October 2007

Abstract

This paper examines the relative wealth position and the portfolio choices of immigrants in Germany. The empirical findings reveal significant differences in overall wealth and various wealth components between German natives and immigrants. Differences in real estate constitute the major part of different levels of net worth, indicating that disparities in home-ownership rates are responsible for the main part of the overall wealth gap. Moreover, migrants' degree of portfolio diversification is significantly lower than that of comparable natives. The results of a decomposition analysis suggest that differences in wealth and asset holdings may be explained by disparity in educational attainment to a sizable extent, while the effects of income differentials and differences in demographic characteristics are insignificant.

Keywords: international migration, wealth accumulation, decomposition analysis, multiple imputation

JEL Classification: F22, D31

Suggested Citation

Sinning, Mathias, Wealth and Asset Holdings of Immigrants in Germany (October 2007). IZA Discussion Paper No. 3089, Available at SSRN: https://ssrn.com/abstract=1027896 or http://dx.doi.org/10.2139/ssrn.1027896

Mathias Sinning (Contact Author)

Australian National University (ANU) - Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

HOME PAGE: http://www.mathiassinning.com

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