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The Portfolio Choices of Hispanic Couples

Authors


  • * Direct correspondence to Vincent Hildebrand, Department of Economics, 363 York Hall, Glendon College, York University, Toronto, Ontario, M4N 3M6 Canada 〈vincent@econ.yorku.ca〉. The authors will share all data and coding information with those wishing to replicate the study and thank two anonymous referees for useful comments on previous drafts of this article. Vincent Hildebrand gratefully acknowledges support from the Social and Economic Dimensions of an Aging Population (SEDAP) Research Program at McMaster University.

Abstract

Objectives. The objective of this article is to assess the overall wealth level and portfolio choices of Hispanic families.

Methods. We use Survey of Income and Program Participation (SIPP) data to first estimate the determinants of net worth. Conditioning on overall wealth levels, we then estimate a model of asset portfolios.

Results. Our results reveal that Hispanic couples as a group are less wealthy than otherwise similar white couples, although there is substantial variation across Hispanic-origin groups. Accounting for these wealth disparities, Hispanic couples hold less financial wealth, but more real estate and business equity than do white couples.

Conclusions. Much of the disparity in portfolio choices of Hispanics as a group relative to whites appears to stem from the fact that they are less wealthy. At the same time, it is important to separately analyze the wealth position of distinct Hispanic-origin groups.

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