Ruhr Economic Papers

RWI, RUB, RGS Econ, 09/2012, 37 S./p., 8 Euro, ISBN 978-3-86788-420-4 DOI: 10.4419/86788420

Abstract

There is a significantly higher prevalence of multigenerational living arrangements among migrants than among natives in Germany which may be explained with migrants choosing this household structure in order to compensate for economic disadvantages. This hypothesis is tested by analyzing the economic conditions within multigenerational households. The results show that in multigenerational migrant households, more groups contribute significantly to the household income than in comparable native households – in particular in households below the at-risk-of-poverty line. On the individual level, the results reveal that migrant children in multigenerational households have lower labor force participation rates than native children or migrant children in other household types. Therefore, this study provides evidence for a correlation between multigenerational cohabitation and economic conditions among migrants.