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IMMIGRANT HOUSEHOLD INVESTMENT BEHAVIOR AND COUNTRY OF ORIGIN: A STUDY OF IMMIGRANTS TO THE UNITED STATES

Authors


Correspondence to: Vicki L. Bogan, The Charles H. Dyson School of Applied Economics and Management, 320 Warren Hall, Cornell University, Ithaca, NY 14853.

E-mail: vlb23@cornell.edu

ABSTRACT

Previous literature concerning immigrant financial market participation has typically treated the immigrant population as a homogeneous collective. However, the immigrant population in the United States is incredibly diverse, particularly in regards to country of origin. Using panel data, we test the hypothesis that differing information costs generate differences in U.S. immigrant asset market participation rates. We find significant variations (by country of origin) in the immigrant rates of holding stock, mutual funds, U.S. Savings Bonds, and other fixed income securities do exist. Our results provide support for the theory that information costs drive these differences. (JEL: G11)Keywords: Household investment decision making; immigrants ©2010. All rights reserved. Work in progress. All errors are our own. Copyright © 2012 John Wiley & Sons, Ltd.

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