The Savings Behavior of Temporary and Permanent Migrants in Germany

Thomas Bauer () and Mathias Sinning ()

No 1632, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper examines the relative savings position of migrant households in West Germany, paying particular attention to differences between temporary and permanent migrants. Utilizing household level data from the German Socio-Economic Panel (GSOEP), our findings reveal significant differences in the savings rates between foreign-born and German-born individuals. These differences disappear, however, for temporary migrants, if their remittances are taken into account. Fixed effects estimations of the determinants of immigrants' savings rates reveal that intended return migration does not only affect remittances, but also the savings rate of migrant households in the host country. The results of a decomposition analysis indicate that differences in the savings rate between Germans and foreigners can mainly be attributed to differences in observable characteristics. We do not find strong evidence for an adjustment of the savings rate between immigrants and natives over time, indicating deficits in the long-term integration of permanent migrants in Germany.

Keywords: savings; migration (search for similar items in EconPapers)
JEL-codes: C24 E21 F22 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2005-06
New Economics Papers: this item is included in nep-eec, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Published - published in: Journal of Population Economics, 2011(2), 24, 421-449

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https://docs.iza.org/dp1632.pdf (application/pdf)

Related works:
Journal Article: The savings behavior of temporary and permanent migrants in Germany (2011)
Working Paper: The Savings Behaviour of Temporary and Permanent Migrants in Germany (2005)
Working Paper: The Savings Behavior of Temporary and Permanent Migrants in Germany (2005)
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