Date Published:
Jun 01, 2006
Category:
Discussion Papers
Focus Area(s):
Code:
DP 2006-14

This paper examines the relationship between household savings and family size. Household savings are important indicators for family welfare not only in terms of its investment and income generation prospects but also, and perhaps more importantly given pervasive borrowing constraints and limited social security coverage, because it provides protection from income shortfalls. Descriptive and multivariate evidence on the relationship of household savings and family size are provided. The endogeneity of family size in the household savings equation, as argued for in the old-age security hypothesis, is properly considered by using instrumental variables estimation technique. The paper uses a recent nationally representative household survey in the analysis. The results show that, on average, the impact of additional children on household savings is negative and that the impact is regressive.

Citations

This publication has been cited 6 times

In other Publications
  1. Bankole, Kayode, Israel Ukolobi, and Onyuka Mcdubus. 2020. The impacts of monetary policies on savings and investment in developing economies: A case study. Working Papers hal-02520027. HAL.
  2. Ismail, Aisha and Kashif Rashid. 2013. Determinants of household saving: Cointegrated evidence from Pakistan (1975–2011). Economic Modelling, 32(C), 524-531. Elsevier.
  3. Kiran, Tanvi and Shivam Dhawan. 2015. The impact of family size on savings and consumption expenditure of industrial workers: A cross-sectional study. American Journal of Economics and Business Administration, 7, no. 4, 177-184. Science Publications.
  4. Kulikov, Dmitry and Karsten Staehr. 2007. Microeconometric analysis of household saving in Estonia: Income, wealth, financial exposure. Bank of Estonia Working Papers wp2007-8. Bank of Estonia, revised 03 Feb 2015.
  5. Racelis, Rachel H. and J.M Ian S. Salas. 2007. Measuring economic lifecycle and flows across population age groups: Data and methods in the application of the NTA in the Philippines. Development Economics Working Papers 22682. East Asian Bureau of Economic Research.
  6. Salas, J.M. Ian S. and Rachel H. Racelis. 2007. Measuring economic lifecycle and flows across population age groups: Data and methods in the application of the NTA in the Philippines. Discussion Papers DP 2007-12. Philippine Institute for Development Studies.


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