Immigration and wealth inequality in old age: The case of Israel (original) (raw)
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The Wealth Gap between Ageing Immigrants and Native-Born in Ten European Countries
Czech Sociological Review, 2021
Using data from the Survey of Health, Aging and Retirement in Europe from 10 European countries, this study contributes to the research on immigrants' economic incorporation by focusing on the nativity wealth gaps in mid and late life. Three origin groups of immigrants were distinguished: non-European, post-Communist, and western, central, and south European countries. We estimated the size of the wealth gap between each immigrant population and natives, the sources of the gap, and the trajectory of wealth convergence. The data revealed that the mean net worth of native-born groups was higher than that of all immigrant subgroups. The gap was widest for non-European immigrants and lowest for West, Central, and South European immigrants. Differences in the rate of homeownership accounted for the largest portion of the gap, while neither differential levels of income nor education accounted for much of the gap between native-born and either non-European immigrants or immigrants from post-communist countries. Reception of gifts or inheritances did not account for a meaningful portion of the gaps. Estimation of the rate of convergence suggests that it would take an average of 85 years after arrival for an average immigrant household to bridge the wealth gap between it and an average native-born household. The rate of wealth convergence was somewhat faster for non-Europeans and slower for West, Central, and South Europeans.
Immigration, State Support, and the Economic Well-Being of the Elderly in Israel
Research on Aging, 2003
The economic well-being of the elderly largely reflects their cumulative achievements in the labor market and the success of welfare policy in reducing income gaps and inequality. This article focuses on the effect of immigration, especially its timing along the life course, on economic well-being later in life. Using data from a nationally representative survey of the elderly population in Israel, we found that immigrants entering Israel at a young age were able not only to accumulate sufficient labor force experience but also to secure the types of employment that grant high levels of benefits. Thus, they could achieve economic independence by old age. The findings underscore the role of the state in compensating those who immigrated at older ages for their inability to accumulate market resources by raising them above the poverty line.
This study focuses on earnings disadvantages experienced by three ethnic groups of Jewish immigrants in Israel. Data were obtained from the 2011 Income Survey gathered by the Israel Central Bureau of Statistics. The findings reveal that when compared to Israeli-born, all ethnic groups are disadvantaged in earnings attainment in the first generation. The earnings disadvantages of immigrants as compared to Israeli-born decrease with the passage of time and become negligible in the second generation. To disentangle the impact on earnings penalty of ethnic origin from that of immigrant status, a procedure for decomposing mean differences between groups is introduced. The analysis reveals that earnings disadvantage among Ashkenazim and Soviet immigrants can be attributed to immigrant status but not to ethnicity. By contrast, earnings penalties among Sephardim immigrants can be attributed to both ethnicity and immigrant status. The implications of the long-lasting effect of ethnicity versus the short-term effect of immigrant status are discussed.
Immigrants and Wealth Stratification In The U.S
2001
This study examines the importance of including immigrants in studies of wealth stratification by race/ethnicity, using data from the 1992 and 1993 panels of the Survey of Income and Program Participation. It addresses the uniqueness of immigrants using descriptive and multivariate analyses by constructing a measure of wealth age that considers immigrants' length of residence in America and by considering migration and adoption history and immigrant-native differences in factors sorting wealth accumulation. Descriptive analysis show greater difference in wealth distribution, zero and negative wealth holdings, wealth components, and age-wealth profiles by race/ethnicity than by immigrant status. Age-wealth profiles are steeper for immigrants than for the native born when using wealth age. The multivariate analysis uses a framework integrating life cycle theory, status attainment theory, human capital theory, and theories related to social contexts. Results show a positive effect of immigrant status on wealth accumulation, rather than the impairing effects of racial/ethnic minorities. Migration and adaptation history are factors in wealth accumulation. Significant structural differences exist between immigrants and natives (a lesser role of education and spatial segregation in wealth accumulation for immigrants) and between whites and minorities (a greater role of education for minorities). (Contains 36 references.) (SM) Reproductions supplied by EDRS are the best that can be made from the original document.
ABSTRACT A Comparative Analysis of the Nativity Wealth Gap
This paper investigates the source of the gap in the relative wealth position of immigrant households residing in Australia, Germany and the United States. Our results indicate that in Germany and the United States wealth differentials are largely the result of disparity in the educational attainment and demographic composition of the native and immigrant populations, while income differentials are relatively unimportant in understanding the nativity wealth gap. In contrast, the relatively small wealth gap between Australian- and foreign-born households exists because immigrants to Australia do not translate their relative educational and demographic advantage into a wealth advantage. On balance, our results point to substantial cross-national disparity in the economic well-being of immigrant and native families, which is largely consistent with domestic labor markets and the selection policies used to shape the nature of the immigration flow.
A Comparative Analysis of the Nativity Wealth Gap
2007
This paper investigates the source of the gap in the relative wealth position of immigrant households residing in Australia, Germany and the United States. Our results indicate that in Germany and the United States wealth differentials are largely the result of disparity in the educational attainment and demographic composition of the native and immigrant populations, while income differentials are relatively unimportant in understanding the nativity wealth gap. In contrast, the relatively small wealth gap between Australian-and foreign-born households exists because immigrants to Australia do not translate their relative educational and demographic advantage into a wealth advantage. On balance, our results point to substantial cross-national disparity in the economic well-being of immigrant and native families, which is largely consistent with domestic labor markets and the selection policies used to shape the nature of the immigration flow.
Wealth of Immigrant and Native-Born Americans
International Migration Review, 2006
This study hypothesizes nativity differences in the process of wealth accumulation with regards to accumulation rates, dissaving rates, the role of human capital, saving intention for children, and structural barriers to wealth accumulation. Based on an analysis of the 1992 and 1993 panels of the Survey of Income and Program Participation (SIPP), it reports four major findings. First, levels of net worth, life cycle patterns, and wealth components are primarily stratified by national origin and race-ethnicity rather than by nativity. Second, when immigrants’ adult years in the United States are taken into account, the life cycle pattern of wealth of the post-1965 immigrants catches up with that of natives within 22 years of arrival and then overtakes natives. Third, the process of wealth accumulation is similar for immigrants and natives in all but two respects – for immigrants, education is discounted and adult years in the United States matter. Lastly, spatial segregation has a un...
Immigrants and Wealth Stratification in the U.S. JCPR Working Paper
2000
This study examines the importance of including immigrants in studies of wealth stratification by race/ethnicity, using data from the 1992 and 1993 panels of the Survey of Income and Program Participation. It addresses the uniqueness of immigrants using descriptive and multivariate analyses by constructing a measure of wealth age that considers immigrants' length of residence in America and by considering migration and adoption history and immigrant-native differences in factors sorting wealth accumulation. Descriptive analysis show greater difference in wealth distribution, zero and negative wealth holdings, wealth components, and age-wealth profiles by race/ethnicity than by immigrant status. Age-wealth profiles are steeper for immigrants than for the native born when using wealth age. The multivariate analysis uses a framework integrating life cycle theory, status attainment theory, human capital theory, and theories related to social contexts. Results show a positive effect of immigrant status on wealth accumulation, rather than the impairing effects of racial/ethnic minorities. Migration and adaptation history are factors in wealth accumulation. Significant structural differences exist between immigrants and natives (a lesser role of education and spatial segregation in wealth accumulation for immigrants) and between whites and minorities (a greater role of education for minorities). (Contains 36 references.) (SM) Reproductions supplied by EDRS are the best that can be made from the original document.
Multi-generation model of immigrant earnings: theory and application
Research in Labor Economics
The literature, starting with Chiswick (1977, 1978) to Gang and Zimmermann (2000), more recently, focuses on the economic achievements and performance of first-and secondgeneration migrants. This paper presents a three-generation migrant analysis, comparing relative economic performance of various migrant generations to one another and to the native population. We developed a theoretical model, which was then explored empirically using data from the 1995 Israeli Census. In both the theoretical and empirical analyses, the curve describing intergenerational immigrant earnings mobility is inversely U-shaped. The second generation earns relatively more than the first and third generations, while the third generation earns less than the second, but more than the first. Thus, assimilation of the third generation into the local population is far from clear.
Ageing and Society, 2017
Previous research unequivocally shows that immigrants are less successful in the labour market than the native-born population. However, little is known about whether ethnic inequality persists after retirement. We use data on 16 Western European countries from the European Union Statistics on Income and Living Conditions (EU-SILC, 2004–2013) to provide the first comparative study of ethnic inequalities among the population aged 65 and older. We focus on the retirement income gap (RIG) between immigrants from non-European Union countries and relate its magnitude to country differences in welfare state arrangements. Ethnic inequality after retirement is substantial: after adjusting for key characteristics including age, education and occupational status, the average immigrant penalty across the 16 countries is 28 per cent for men and 29 per cent for women. Country-level regressions show that income gaps are smaller in countries where the pension system is more redistributive. We also...