cover image: A comparative analysis of the nativity wealth gap

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A comparative analysis of the nativity wealth gap

19 Jun 2007

Our results indicate that in Germany and the United States wealth differentials are largely the result of disparity in the educational attainment and demographic composition of the native and immigrant populations, while income differentials are relatively unimportant in understanding the nativity wealth gap. [...] In Australia, for example, the foreign-born population is currently aging more rapidly than the native-born population, while in Germany and the United States immigrants are as likely as the native-born to be over the age of 55.1 Thus, like their native-born counterparts, substantial numbers of immi- 1Fully 14.6% of the foreign-born population is between the ages of 55-64 in com- parison to 7.9% o [...] Underestimation of assets in the upper tail of the wealth distribution accounts for about 72% of the difference in the SIPP and SCF 16 estimates of asset levels, while asset categories not measured in the SIPP account for an additional 13%. [...] In the United States, the total value of funds in Thrift/401K ac- counts is available in the assets and liabilities module of the SIPP, while the value of pension benefits in defined-contribution plans could in principle be extracted from the SIPP’s pension module (wave 7). [...] Specifically, the net worth of immigrants to Australia is approximately 90% of the average wealth level of their Australian-born counterparts, while immigrant households hold only about 45% to 50% of the net worth of native households in Germany and the United States.
politics economy australia debt employment equity immigrants immigration investments labour retirement unemployment wealth loan mortgage pension precautionary savings demographics pension system economic inequality quantile wealth gap educational attainment in the united states equity (finance) dummy variable (statistics) individual retirement account wealth gaps u.s. social security
Pages
59
Published in
Canada

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