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

Arbeitspapier

This paper provides new evidence on native-migrant differences in financial behavior by analyzing the role of noncognitive and cognitive skills. We make use of data from the Health and Retirement Survey (HRS) which is a longitudinal household survey of the older U.S. population containing detailed information about demographic characteristics, financial assets and personality traits of household members. In line with previous studies, we find a substantial gap in stockholding between immigrant and native households. Estimates from a random effects model suggest that cognitive and non-cognitive skills, including personality concepts and economic preferences, are important drivers of stockholding and explain part of the differences between natives and immigrants. These findings are supported by results from a Blinder-Oaxaca decomposition analysis. Our paper therefore 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: HWWI Research Paper ; No. 164

Classification and Topics

• Classification: Wirtschaft ; Household Saving; Personal Finance ; Portfolio Choice; Investment Decisions ; Geographic Labor Mobility; Immigrant Workers
• Subject: Stockholding ; Immigrants ; Personality traits ; Decomposition

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Luik, Marc-André ; Steinhardt, Max Friedrich
• Event: Veröffentlichung
• (who): Hamburgisches WeltWirtschaftsInstitut (HWWI)
• (where): Hamburg
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/110952
• Last update: 10.03.2025, 11:42 AM CET