Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/149464
Authors: 
De Arcangelis, Giuseppe
Joxh, Majlinda
Year of Publication: 
2015
Citation: 
[Journal:] IZA Journal of Migration [ISSN:] 2193-9039 [Volume:] 4 [Year:] 2015 [Pages:] 1-36
Abstract: 
This paper investigates the saving behavior of migrants in the UK across different dimensions, i.e., comparing temporary versus permanent migrants and migrants versus natives. Established theoretical predictions show that migrants save more when they plan to stay in the destination only temporarily as target savers. Our empirical evidence takes into account the contemporaneous choice of savings and remittances. Moreover, when comparing the saving profiles of both natives and migrants, we uncover the weight of observable socio-economic characteristics other than income and wealth. We use the British Household Panel Survey for the period 1991-2008. The estimation results confirm that temporary migrants have a propensity to save 26 per cent higher than permanent migrants in UK. We also introduce an index of financial capability adjusted for income as an explanatory variable and, when employing the Blinder-Oaxaca decomposition for the Tobit model of saving choice, migrants are more affected by observable social-economic characteristics than natives.
Subjects: 
Temporary migration
Savings
Remittances
Blinder-Oaxaca decomposition
JEL: 
F22
D91
C40
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
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