Immigrant-native differences in stockholding – The role of cognitive and non-cognitive skills

Marc-André Luik () and Max Steinhardt ()

Journal of Empirical Finance, 2016, vol. 38, issue PA, 103-119

Abstract: This paper provides new evidence on immigrant-native differences in financial behavior. We use data from the Health and Retirement Study (HRS). Although looking at long-term immigrants, we find a substantial gap in stockholding between immigrant and native households. Estimates from a probit model suggest that cognitive and non-cognitive skills are important drivers and explain part of the difference between natives and immigrants. These findings are supported by results from a Blinder-Oaxaca decomposition analysis. Our paper delivers first evidence that differences in non-cognitive and cognitive skills contribute to the explanation of the financial market participation gap between natives and immigrants.

Keywords: Stockholding; Immigrants; Personality traits; Decomposition (search for similar items in EconPapers)
JEL-codes: D14 G02 G11 J61 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927539816300573
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Immigrant-native differences in stockholding: The role of cognitive and non-cognitive skills (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:38:y:2016:i:pa:p:103-119

DOI: 10.1016/j.jempfin.2016.05.008

Access Statistics for this article

Journal of Empirical Finance is currently edited by R. T. Baillie, F. C. Palm, Th. J. Vermaelen and C. C. P. Wolff

More articles in Journal of Empirical Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().