Financial Market Participation of Immigrants and Their Intentions to Emigrate From the United States of America

Abstract

In this study, we empirically examine the relationship between U.S. immigrants’ intentions to emigrate from the U.S. and their financial market participation. Researchers have explored several determinants of immigrants’ financial market participation, namely the characteristics of the immigrants and their country of origin. However, one determinant that has not been explored, due to lack of data, is immigrants’ intentions to emigrate from the host country. Using data from the New Immigrant Survey, we find that immigrants with intentions to emigrate from the U.S. are more likely to participate in the financial markets relative to their counterparts with no such intentions. The results also indicate that married immigrants with intentions to emigrate from the U.S. are less likely to own a checking or savings account than immigrants who are not married. In addition, immigrants with the intent to emigrate from the U.S. are more likely to purchase stocks, corporate bonds, or both as they get older.