The savings behavior of temporary and permanent migrants in Germany |
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Authors: | Thomas K. Bauer Mathias G. Sinning |
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Affiliation: | (1) RWI Essen, Hohenzollernstr. 1–3, 45128 Essen, Germany;(2) Ruhr-University Bochum, Bochum, Germany;(3) IZA, Bonn, Germany;(4) Social Policy, Evaluation, Analysis and Research Centre, Research School of Economics, Australian National University, Fellows Road, Canberra, ACT, 0200, Australia |
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Abstract: | This paper examines the relative savings position of migrant households in West Germany paying particular attention to differences between temporary and permanent migrants. Our findings reveal significant differences in the savings rates between German natives and immigrants. If remittances are treated as savings, however, migrants who intend to return to their home country save significantly more than comparable natives. The results of a decomposition analysis indicate that slightly more than half of the differences in the savings rate between Germans and permanent migrants and almost 70% between temporary and permanent migrants can be attributed to differences in observable characteristics. |
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