The Financial Decisions of Immigrant and Native Households: Evidence from Italy

Graziella Bertocchi (), Marianna Brunetti and Anzelika Zaiceva

No 13339, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Using rich Italian data for the period 2006-2014, we document sizeable gaps between native and immigrant households with respect to wealth holdings and financial decisions. Immigrant household heads hold less net wealth than native along the entire wealth distribution. Immigrant status reduces the likelihood of holding risky assets, housing, mortgages, businesses, and valuables, and it increases the likelihood of financial fragility. Standard regression results are corroborated by a propensity score matching strategy. Years since migration, country of origin, and the pattern of intermarriage also matter. The Great Recession has worsened the condition of immigrants in terms of wealth holdings, home ownership, and financial fragility. Results are unaffected if an immigrant is defined as a non-citizen, rather than a foreign-born.

Keywords: Immigrants; Household finance; Wealth; Financial portfolios (search for similar items in EconPapers)
JEL-codes: D14 E21 F22 G11 J15 (search for similar items in EconPapers)
Date: 2020-01
New Economics Papers: this item is included in nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The Financial Decisions of Immigrant and Native Households: Evidence from Italy (2023)
Working Paper: The Financial Decisions of Immigrant and Native Households: Evidence from Italy (2020)
Working Paper: The Financial Decisions of Immigrant and Native Households: Evidence from Italy (2018)
Working Paper: The Financial Decisions of Immigrant and Native Households: Evidence from Italy (2018)
Working Paper: The Financial Decisions of Immigrant and Native Households: Evidence from Italy (2018)
Working Paper: The Financial Decisions of Immigrant and Native Households: Evidence from Italy (2018)
Working Paper: The Financial Decisions of Immigrant and Native Households: Evidence from Italy (2018)
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