Do immigrants save less than natives? Immigrant and native saving behaviour in Australia

Asadul Islam, Jaai Parasnis, Dietrich Karl Fausten

Research output: Contribution to journalArticleResearchpeer-review

Abstract

The observed wealth differential in favour of native households seems to contradict the analytical presumption of a saving differential in favour of immigrant households. This article seeks to explain the observed differences in wealth through an examination of the respective saving behaviour of immigrants and natives. Quantile regression and semiparametric decomposition methods are used to identify the saving differential and to isolate the factors that contribute to it. The basic finding is that household income is the key to the differential saving pattern. Moreover, decomposition analysis suggests that immigrants have a tendency to save more than natives when compared with Australian-born households with similar characteristics. We also find evidence of heterogeneity in immigrant saving behaviour depending on household types and countries of origin.
Original languageEnglish
Pages (from-to)52 - 71
Number of pages20
JournalEconomic Record
Volume89
Issue number284
DOIs
Publication statusPublished - 2013

Cite this

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title = "Do immigrants save less than natives? Immigrant and native saving behaviour in Australia",
abstract = "The observed wealth differential in favour of native households seems to contradict the analytical presumption of a saving differential in favour of immigrant households. This article seeks to explain the observed differences in wealth through an examination of the respective saving behaviour of immigrants and natives. Quantile regression and semiparametric decomposition methods are used to identify the saving differential and to isolate the factors that contribute to it. The basic finding is that household income is the key to the differential saving pattern. Moreover, decomposition analysis suggests that immigrants have a tendency to save more than natives when compared with Australian-born households with similar characteristics. We also find evidence of heterogeneity in immigrant saving behaviour depending on household types and countries of origin.",
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Do immigrants save less than natives? Immigrant and native saving behaviour in Australia. / Islam, Asadul; Parasnis, Jaai; Fausten, Dietrich Karl.

In: Economic Record, Vol. 89, No. 284, 2013, p. 52 - 71.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

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AU - Islam, Asadul

AU - Parasnis, Jaai

AU - Fausten, Dietrich Karl

PY - 2013

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N2 - The observed wealth differential in favour of native households seems to contradict the analytical presumption of a saving differential in favour of immigrant households. This article seeks to explain the observed differences in wealth through an examination of the respective saving behaviour of immigrants and natives. Quantile regression and semiparametric decomposition methods are used to identify the saving differential and to isolate the factors that contribute to it. The basic finding is that household income is the key to the differential saving pattern. Moreover, decomposition analysis suggests that immigrants have a tendency to save more than natives when compared with Australian-born households with similar characteristics. We also find evidence of heterogeneity in immigrant saving behaviour depending on household types and countries of origin.

AB - The observed wealth differential in favour of native households seems to contradict the analytical presumption of a saving differential in favour of immigrant households. This article seeks to explain the observed differences in wealth through an examination of the respective saving behaviour of immigrants and natives. Quantile regression and semiparametric decomposition methods are used to identify the saving differential and to isolate the factors that contribute to it. The basic finding is that household income is the key to the differential saving pattern. Moreover, decomposition analysis suggests that immigrants have a tendency to save more than natives when compared with Australian-born households with similar characteristics. We also find evidence of heterogeneity in immigrant saving behaviour depending on household types and countries of origin.

U2 - 10.1111/1475-4932.12000

DO - 10.1111/1475-4932.12000

M3 - Article

VL - 89

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EP - 71

JO - Economic Record

JF - Economic Record

SN - 0013-0249

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