Immigrant and Native Asset Accumulation: The Issue of Long Term Immigrant Assimilation

Sherrie Kossoudji, University of Michigan
Stan Sedo, University of Michigan

What is the wealth position of immigrants relative to natives? Do differences of knowledge and confidence in financial institutions lead to differences in long term economic security? Questions about immigrant worker asset accumulation have remained nearly unasked in the face of hundreds of articles about immigrant assimilation. We analyze wealth differences by examining the acquisition of a single asset—home real estate. Are immigrants as likely as natives to purchase their home? Although past authors have concentrated on immigrant nativity and residential location to explain homeownership differences, a more nuanced discussion occurs when immigrants are separated into citizens and non-citizens, and when nationality is compared to ethnicity and race. We also take the analysis several steps further than past authors. We examine the determinants of the rate of homeownership/buying, the rate of 100% ownership (owners have no lien on the home), the debt to value ratio for homeowners, and equity levels.