Ethnic Persistence, Assimilation and Risk Proclivity
27 Pages Posted: 17 Jan 2007 Last revised: 16 Apr 2023
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Ethnic Persistence, Assimilation and Risk Proclivity
Ethnic Persistence, Assimilation and Risk Proclivity
Abstract
The paper investigates the role of social norms as a determinant of individual attitudes by analyzing risk proclivity reported by immigrants and natives in a unique representative German survey. We employ factor analysis to construct measures of immigrants' ethnic persistence and assimilation. The estimated effect of these measures on risk proclivity suggests that adaptation to the attitudes of the majority population closes the immigrant-native gap in risk proclivity, while stronger commitment to the home country preserves it. As risk attitudes are behaviorally relevant, and vary by ethnic origin, our results could also help explain differences in economic assimilation of immigrants.
Keywords: second generation effects, risk attitudes, ethnic persistence, gender, assimilation
JEL Classification: D1, D81, F22, J15, J16, J31, J62, J82
Suggested Citation: Suggested Citation
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