The family investment hypothesis predicts that credit-constrained immigrant families adopt a strategy for financing post-migration human capital investment in which the “primary worker” engages in investment activities and the other partner undertakes activities that finance consumption. Empirical tests of this hypothesis have assumed that the primary worker is the male partner. Many immigrants to Australia are admitted through a “points test” which assigns points for productive skills. Once a principal applicant receives a visa, dependent family members are automatically granted visas as well. Thus, we re-evaluate the family investment hypothesis using principal applicant status to identify primary and secondary workers.
Authors
![Thomas Crossley](/sites/default/files/styles/square_desktop/public/2022-07/Tom%20Crossley.jpg?itok=8BNVWAtq)
Research Fellow University of Michigan
Tom is a Research Fellow at IFS, a Research Professor for the Institute for Social Research at the University of Michigan.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Deborah Ann Cobb-Clark
Journal article details
- DOI
- 10.1016/j.labeco.2003.05.002
- Publisher
- Elsevier
- JEL
- D10,J22,J61
- Issue
- June 2004
Suggested citation
Cobb-Clark, D and Crossley, T. (2004). 'Revisiting the family investment hypothesis' (2004)
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