Do Immigrants Save Less than Natives? Immigrant and Native Saving Behaviour in Australia

20 Pages Posted: 26 Feb 2013

See all articles by Asad Islam

Asad Islam

Monash University - Department of Economics

Jaai Parasnis

Monash University - Department of Economics

Dietrich Fausten

Monash University - Department of Economics

Date Written: March 2013

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 Australianā€born households with similar characteristics. We also find evidence of heterogeneity in immigrant saving behaviour depending on household types and countries of origin.

Suggested Citation

Islam, Asadul and Parasnis, Jaai and Fausten, Dietrich, Do Immigrants Save Less than Natives? Immigrant and Native Saving Behaviour in Australia (March 2013). Economic Record, Vol. 89, Issue 284, pp. 52-71, 2013, Available at SSRN: https://ssrn.com/abstract=2224443 or http://dx.doi.org/10.1111/1475-4932.12000

Asadul Islam

Monash University - Department of Economics ( email )

Department of Economics
Monash University
Caulfield East, Victoria
Australia
+61399032783 (Phone)

HOME PAGE: http://users.monash.edu/~asaduli/

Jaai Parasnis

Monash University - Department of Economics ( email )

Wellington Road
Clayton, Victoria 3
Australia

Dietrich Fausten

Monash University - Department of Economics ( email )

Wellington Road
Clayton, Victoria 3
Australia

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