Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110952
Authors: 
Luik, Marc-André
Steinhardt, Max Friedrich
Year of Publication: 
2015
Series/Report no.: 
HWWI Research Paper 164
Abstract: 
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.
Subjects: 
Stockholding
Immigrants
Personality traits
Decomposition
JEL: 
D14
G02
G11
J61
Document Type: 
Working Paper

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