Reports Summarize Investment Findings from European Central Bank (Immigration and the Distribution of Income, Consumption and Wealth In the Euro Area: Implications for Economic Policies): Investment

2024 OCT 10 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Research findings on Investment are discussed in a new report. According to news originating from Frankfurt, Germany, by NewsRx correspondents, research stated, “We use representative data from household surveys in the euro area to describe differences in wages, income, consumption, wealth and liquid assets between households born in their country of residence (‘natives’) and those born in other EU and non-EU countries (‘immigrants’). The differences in wealth and liquid assets are more substantial than the differences in wages, income and consumption: immigrants earn on average about 30% lower wages than natives and hold roughly 60% less net wealth.”

Our news journalists obtained a quote from the research from European Central Bank, “For all variables, only a small fraction of differences between natives and immigrants-around 30%-can be explained by differences in demographics (age, gender, marital status, education, occupation, sector of employment). Immigrants are more likely to be liquidity constrained: while we classify 17% of natives as ‘hand-to-mouth’ (they hold liquid assets worth less than two weeks of their income), the corresponding share is 20% for households born in another EU country and 29% for those born outside the EU. Employment rates of immigrants are substantially more sensitive to fluctuations in aggregate employment.”

According to the news editors, the research concluded: “We discuss the implications of these findings for economic policies, including monetary, fiscal and pre-distribution policies.”

This research has been peer-reviewed.

For more information on this research see: Immigration and the Distribution of Income, Consumption and Wealth In the Euro Area: Implications for Economic Policies. Journal of Policy Modeling, 2024;46(5):867-886. Journal of Policy Modeling can be contacted at: Elsevier Science Inc, Ste 800, 230 Park Ave, New York, NY 10169, USA. (Elsevier - www.elsevier.com; Journal of Policy Modeling - http://www.journals.elsevier.com/journal-of-policy-modeling/)

The news correspondents report that additional information may be obtained from Jiri Slacalek, European Central Bank, Frankfurt, Germany. Additional authors for this research include Maarten Dossche, Aleksandra Kolndrekaj, Maximilian Propst, Javier Ramos Perez and Marton Vegh.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jpolmod.2024.02.005. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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