Immigrants and natives’ financial decision making: Evidence from Syrian refugees in Türkiye

This study investigates the causal effects of Syrian migrants on the financial behavior of natives in Türkiye. Utilizing comprehensive administrative data, we employ a two-stage least square (2 S LS) estimation technique that isolates causal effects by exploiting substantial exogenous variation in the share of migrants relative to natives, arising from the geographical proximity to Syrian governorates of a specific province. Results indicate that immigrants have no significant overall effects on the financial decisions of natives. We find no conclusive evidence that migrant influx promotes overall stock market participation at both extensive and intensive margins. Moreover, our investigation reveals a minimal variation in direct stock ownership or the wealth invested in stocks due to migrants. We observe neither economically nor statistically significant effects on the share of natives holding bonds or funds. Additionally, no discernible impact of migrants on the wealth per capita invested in bonds, funds, and the overall stock market emerges. However, we find limited evidence suggesting that migrants contribute to an increase in the share of wealth invested in stocks, albeit with a corresponding decrease in the share of wealth allocated to funds. Lastly, we explore potential heterogeneity in the effects of immigrants by gender, but our findings reveal no significant variation by gender.