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In this paper, we analyze the role of culture in determining whether, or not, an individual is a homeowner. We use data on first‐generation immigrants who arrived in the United States under 6 years old. Following the epidemiological approach, any dissimilarity in the proportion of homeowners by country of origin may be interpreted as a consequence of cultural differences. Our estimates indicate that there is a positive and statistically significant relationship between the cultural proxy and the immigrants' choice of home‐ownership. Additionally, we present evidence of different mechanisms of transmission of culture, which reinforces our results on the cultural effect. [ABSTRACT FROM AUTHOR]

Abstract This paper argues that new immigrants cluster in culturally homogeneous groups in the host country because of imperfect information. However, a pulling effect exists provided that the cultural communities are not too large. With a panel of migration flows to the major O.E.C.D. countries from the mid 1980s to the mid 1990s, it is shown that the existence of similar cultural communities attracts new immigrants. However, the effect is not homogeneous for all types of source and destination countries. Furthermore, the pulling effect is shown to fall to zero for cultural communities above a certain threshold size. [ABSTRACT FROM AUTHOR]