Mathias Sinning RWI Essen

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 foreign-born and German-born individuals. These differences diminish for temporary migrants, if their remittances are taken into account. The results of a decomposition analysis indicate that the major part of the differences in the savings rate between Germans and permanent migrants as well as between temporary and permanent migrants can be attributed to differences in observable characteristics. Dividing the sample of immigrant households into regions of origin, we find substan-tial differences in the savings behavior of migrants from different source countries