Floro, Maria and Seguino, Stephanie (2002): Gender effects on aggregate saving: A theoretical and empirical analysis.
This is the latest version of this item.
Download (282kB) | Preview
This study investigates the hypothesis that shifts in women’s relative income, which affects their bargaining power in the household, have discernible effects on aggregate saving due to differing saving propensities by gender. An analytical framework for pooled and non-pooled savings households is developed to examine why women and men’s saving propensities may differ and how a change in women’s wage earnings relative to men’s influences household savings. An empirical analysis is conducted using panel data for a set of 20 semi-industrialized economies, covering the period 1975-95. The results indicate that as some measures of women’s discretionary income and bargaining power increase, aggregate saving rates rise, implying a significant effect of gender on aggregate savings. These findings demonstrate the importance of understanding gender relations at the household level in planning for savings mobilization and in the formulation of financial and investment policies.
|Item Type:||MPRA Paper|
|Original Title:||Gender effects on aggregate saving: A theoretical and empirical analysis|
|Keywords:||gender, aggregate saving|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development
D - Microeconomics > D9 - Intertemporal Choice and Growth > D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E21 - Consumption; Saving; Wealth
|Depositing User:||Stephanie Seguino|
|Date Deposited:||28. Oct 2008 08:02|
|Last Modified:||16. Feb 2013 05:04|
Acharya, Meena and Lyn Bennett (1981). "Women and the Subsistence Sector: Economic Participation and Household Decision-making in Nepal," World Bank Staff Working Paper No. 526, World Bank, Washington, D.C.
Adams, Dale and Delbert Fitchett, eds. (1992). Informal Finance in Low-Income Countries, Westview Press, Boulder.
Agarwal, Bina (1995). A Field of One’s Own: Gender and Land Rights in South Asia, Cambridge University Press, Cambridge.
Aghevli, Bijan, James Broughton, Peter Montiel, Delano Villanueva, and Geoffrey Woglom (1990). “The Role of National Saving in the World Economy: Recent Trends and Prospects,” IMF Occasional Paper No. 67, International Monetary Fund, Washington DC.
Akyűz, Yilmaz (1991). “Financial Policies for Industrialization and Development: Reflections on Financial Deepening and Efficiency,” in Machiko Nissanke and Adrian Hewitt (eds.), Economic Crisis in Developing Countries: New Perspectives on Commodities, Trade and Finance, Pinter, London.
Alo, O. and S. Adjebeng-Asem (1988). "Women and National Development: A Socio-Cultural Analysis of the Nigerian Experience." In M. F. Abraham and P. S. Abraham (eds.), Women, Development and Change: The Third World Experience, Wyndham Hall Press, Brystol, Indiana.
Bajtelsmit, Vickie and Alexandra Bernasek (1996). “Why Do Women Invest Differently Than Men?” Financial Counseling and Planning 7.
Bajtelsmit, Vickie and J. Van Derhei (1997). “Risk Aversion and Pension Investment Choices,” in Michael S. Gordon, et. al. (eds.), Positioning Pensions for the Twenty-First Century, University of Pennsylvania Press, Philadelphia, pp. 45-66.
Barke, R, H. Jenkins-Smith and P. Slovic (1997). “Risk Perceptions of Men and Women Scientists,” Social Science Quarterly 78 (1): 167-176.
Barro, Robert and Jong-Wha Lee (1996). “International Measures of Schooling Years and Schooling Quality,” American Economic Review 86 (2): 218-223.
Behrman, Jere and Zhang, Z (1995). “Gender Issues and Employment in Asia,” Asian Development Review 13 (2): 1-49.
Benería, Lourdes and Martha Roldan (1987). The Crossroads of Class and Gender: Industrial Homework, Subcontracting and Household Dynamics in Mexico City, University of Chicago Press, Chicago.
Bernasek, Alexandra (2000). “Gender, Risk and Investment: A Feminist Perspective,” paper presented at the Annual IAFFE Conference, Istanbul, Turkey, August 15-17, 2000.
Birdsall, Nancy and Jere Behrman (1991). “Why Do Males Earn More Than Females in Urban Brazil: Earnings Discrimination or Job Discrimination,” in Nancy Birdsall and Richard Sabot (eds.), Unfair Advantage: Labor Markets Discrimination in Developing Countries, World Bank, Washington, D.C., pp. 147-69.
Blumberg, Rae Lesser (1988). “Income Under Female Versus Male Control: Hypotheses From a Theory of Gender Stratification and Data From the Third World,” Journal of Family Issues 9 (1): 51-84.
Boskin, Michael (1978). “Taxation, Saving, and the Rate of Interest,” Journal of Political Economy 86 (2): S10-S27.
Brenner, R., Marcel Dagenais, and C. Montmarquette (1994). “An Overlooked Explanation of the Declining Saving Rate,” Empirical Economics 19 (4): 629-37.
Callen, Tim and Christian Thimann (1997). “Empirical Determinants of Household Saving: Evidence from OECD Countries,” IMF Working Paper 97/181, International Monetary Fund, Washington, D.C.
Caroll, Christopher and D. Well (1993). “Saving and Growth: A Reinterpretation,” NBER Working Paper No. 4470, National Bureau for Economic Research, Cambridge, MA.
Dayal-Gulati, Anuradha and Christian Thimann (1997). “Saving in Southeast Asia and Latin America Compared: Searching for Policy Lessons,” IMF Working Paper 97/110, International Monetary Fund, Washington, D.C.
Deaton, Angus (1990). “Savings in Developing Countries: Theory and Review,” in Stanley Fischer and Dennis de Tray (eds.), Proceedings of the World Bank Annual Conference on Development Economics 1989, World Bank, Washington D.C.
Deaton, Angus and Christina Paxson (1997). “Growth, Demographic Structure and National Saving in Taiwan,” Working Paper for Princeton University, Research Program in Development Studies.
(1998). “Saving and Growth: Another Look at the Cohort Evidence,” Working Paper for Princeton University, Research Program in Development Studies.
de Melo James and James Tybout (1986). “The Effects of Financial Liberalization on Saving and Investment in Uruguay,” Economic Development and Cultural Change 34 (3): 561-587.
Deolalikar, Anil and Vijayendra Rao (1998). “The Demand for Dowries and Bride Characteristics in Marriage: Empirical Estimates of Rural South-Central India,” in R. Sudharshan (ed.), Gender, Population and Development, Oxford University Press, New Delhi.
Dornbusch, Rudiger and Alejandro Reynoso (1989). “Financial Factors in Economic Development,” American Economic Review 79 (2): 389-444.
Doss, Cheryl. (1996). “Women’s Bargaining Power in Household Economic Decisions: Evidence from Ghana,” Department of Applied Economics Staff Paper P96-11, University of Minnesota, July.
Edwards, Sebastian (1995). “Why Are Savings Rates So Different Across Countries? An International Comparative Analysis,” NBER Working Paper No. 5097, National Bureau of Economic Research, Cambridge, Massachusetts.
Feldstein, Martin and Philippe Bacchetta (1991). “National Saving and International Investment,” in B. Douglas Bernheim and John B. Shoven (eds.), National Saving and Economic Performance, Chicago University Press for NBER, pp. 201-226.
Fleck, Susan (1998). “Choice or Bargain? Married Women’s Labor Force Participation in Honduras,” Ph.D. dissertation, American University, Washington D.C.
Floro, Maria and Joyce Wolf (1990). The Economic and Social Impacts of Girls' Primary Education in Developing Countries, Advancing Basic Education and Literacy (ABEL) Project, U.S. Agency for International Development, Washington, DC.
Floro, Maria Sagrario (1995). “Women’s Well-Being, Poverty, and Work Intensity,” Feminist Economics 1 (3): 1-39.
Folbre, Nancy (1997). “Gender Coalitions: Extrafamily Influences on Intrafamily Inequality,” in Lawrence Haddad, John Hoddinott, and Harold Alderman (eds.), Intrahousehold Resource Allocation in Developing Countries: Models, Methods, and Policy, Baltimore and London, Johns Hopkins University Press for the International Food Policy Research Institute, pp. 263-74.
Flynn, J., P. Slovic, and C. K. Merck (1994). “Gender, Race and Perception of Environmental Health Risks,” Risk Analysis 16 (6): 1101-1108.
Fry, Maxwell J (1978). “Money and Capital or Financial Deepening in Economic Development?,” Journal of Money Credit and Banking 10 (4): 464-475.
(1984). “Saving, Financial Intermediation and Economic Growth in Asia,” Asian Development Review 2 (1):. 82-91.
_____ (1995). Money, interest, and banking in economic development, Johns Hopkins University Press, Baltimore and London.
(1996). “Finance and Growth in Pacific Basin Developing Countries,” in Niels Hermes and Robert Lesnick (eds.), Finance Development and Economic Growth, Routledge, London, pp. 138-160.
Fry, Maxwell and Andrew Mason (1982). “The Variable Rate of Growth Effect in the Life Cycle Saving Model: Children, Capital Inflows, Interest and Growth in a New Specification of the Life Cycle Model Applied to Seven Asian Countries,” Economic Inquiry 20 (3): 426-42.
Ghate, Prabhu (1992). Informal Finance: Some Findings from Asia, Oxford University Press and Asian Development Bank, Manila.
Giovannini, Alberto (1983). “The Interest Elasticity of Savings in Developing Countries: The Existing Evidence,” World Development 11 (7): 601-607.
____ (1985). “Saving and the Real Interest Rate in LDCs,” Journal of Development Economics 18 (2 and 3): 197-217.
Goetz, Anne Marie and Rina Sen Gupta (1996). “Who Takes the Credit? Gender, Power, and Control Over Loan Use in Rural Credit Programs in Bangladesh,” World Development 24 (1): 45-63.
Greenhalgh, Susan (1985). “Sexual Stratification: The Other Side of Growth with ‘Equity’ in East Asia,” Population and Development Review 1 (2): 265-314.
Gugerty, May Kay (1999). “Preliminary Evidence on Rotating Savings and Credit Associations (ROSCAs) in Kenya: You Can’t Save Alone,” Mimeo, Harvard University.
Gupta, Kanhaya L. (1987). “Aggregate Savings, Financial Intermediation, and Interest Rate,” Review of Economics and Statistics 69 (2): 303-17.
Guyer, Jane (1988). “Dynamic Approaches to Domestic Budgeting: Cases and Methods from Africa,” in Daisy Dwyer and Judith Bruce (eds.), A Home Divided: Women and Income in the Third World, Stanford University Press, Palo Alto, pp. 155-172.
Haddad, Lawrence and John Hoddinott (1991). “Gender Aspects of Household Expenditures and Resource Allocation in the Côte d’Ivoire,” Oxford Applied Economics Discussion Paper 112.
Handa, Sudhanshu (1994). “Gender, Headship and Intra Household Resource Allocation,” World Development 22 (10): 1535-1547.
Higgins, Matthew and Jeffrey Williamson (1997). “Age Structure Dynamics in Asia and Dependence on Foreign Capital,” Population and Development Review 23: 261-93.
Hinz, Richard, David McCarthy, and John Turner (1996). “Are Women Conservative Investors?: Gender Differences in Participant-Directed Pension Investments,” in Michael Gordon, Olivia Mitchell, and Marc Twinney (eds.), Positioning Pensions for the Twenty-First Century, University of Pennsylvania Press, Philadelphia, PA, pp. 145-156.
Horton, Susan (1996). Women and Industrialization in Asia, Routledge, London and New York.
Hulme, David and Paul Mosley (1996). Finance Against Poverty, Routledge, London.
Hungerford, Thomas (1999). “Saving For a Rainy Day: Does Pre-Retirement Access to Retirement Savings Increase Retirement Saving?,” Mimeo, Social Security Administration.
Hussein, Khaled and A. P.Thirwall (1999). “Explaining Differences in the Domestic Savings Ratio Across Countries: A Panel Data Study,” Working Paper, University of Kent at Canterbury.
International Labour Organization. Yearbook of Labour Statistics (various years), Geneva.
Jianakoplos, Nancy and Alexandra Bernasek (1998). “Are Women More Risk Averse?,” Economic Inquiry 36: 620-630.
Kabeer, Naila (2000). The Power to Choose: Bangladeshi Women and Labour Market Decisions in London and Dhaka, Verso, London.
Katz, Elizabeth (1991a). “Breaking the Myth of Harmony: Theoretical and Methodological Guidelines to the Study of Rural Third World Households,” Review of Radical Political Economics 23 (3 and 4): 37-56.
____ (1991b). “Intrahousehold Resource Allocation in the Guatemalan Central Highlands: The Impact of Non-Traditional Agricultural Exports,” paper presented at the Latin American Studies Association, Washington DC.
Kim, Seung-Kyung (1997). Class Struggle or Family Struggle?: The Lives of Women Factory Workers in South Korea, Cambridge University Press, Cambridge, UK.
King, Elizabeth (1990). Educating Girls and Women: Investing in Development, World Bank, Washington, DC.
Kumar, Shubh (1978). “Role of the Household Economy in Child Nutrition at Low Incomes: A Case Study in Kerala,” Occasional Paper No. 95, Department of Agricultural Economics, Cornell University, Ithaca, NY.
Leff, Nathaniel (1969). “Dependency Rates and Saving Rates,” American Economic Review 59: 886-96.
Leland, Hayne (1968). “Saving and Uncertainty: The Precautionary Demand for Saving,” Quarterly Journal of Economics 82: 465-473.
Lundberg, Shelly, Robert Pollak, and Terence Wales (1995). “Do Husbands and Wives Pool their Resources? Evidence from the U.K. Child Benefit,” Working Paper, University of Washington, April.
Masson, Paul, Tamim Bayoumi, and Hossein Samiei (1995). “Saving Behavior in Industrial and Developing Countries,” Staff Studies for the World Economic Outlook, International Monetary Fund, pp. 1-27.
Modigliani, Franco (1966). “The Life Cycle Hypothesis of Saving, the Demand for Wealth and the Supply of Capital,” Social Research 33: 160-217.
(1970). “The Life Cycle Hypothesis of Saving and Inter-country Differences in the Saving Ratio” in Walter Eltis, et. al. (eds.), Induction, Trade and Growth: Essays in Honor of Sir Roy Harrod, Oxford, pp. 197-225.
(1986). “Life Cycle, Individual Thrift, and the Wealth of Nations,” American Economic Review 76 (3): 297-313.
Modigliani, Franco and Albert Ando (1957). “Tests of the Life Cycle Hypothesis of Savings: Comments and Suggestions,” Bulletin of the Oxford Institute of Statistics, pp. 99-124.
Neuhouser, Kevin (1989). “Sources of Women’s Power and Status Among the Urban Poor in Contemporary Brazil,” Signs 14 (3): 684-702.
Ogaki, Masao, Jonathan Ostry, and Carmen Reinhart (1994). “Saving Behavior in Low- and Middle-Income Developing Countries: A Comparison,” Working Paper 95/3, International Monetary Fund, Washington, D.C.
Ostry, Jonathan and Carmen Reinhart (1992). “Private Saving and Terms-of-Trade Shocks: Evidence from Developing Countries,” IMF Staff Papers, 39: 495-517.
Palsson, Anne-Marie (1996). “Does the Degree of Relative Risk Aversion Vary with Household Characteristics?,” Journal of Economic Psychology 17 (6): 771-87.
Papanek, Hanna and Laurel Schwede (1988). “Women are Good with Money: earning and Managing in an Indonesian City” in Daisy Dwyer and Judith Bruce (eds.), A Home Divided: Women and Income in the Third World, Stanford University Press, Palo Alto, pp. 71-98.
Paxson, Christina (1995). “Saving and Growth: Evidence From Micro Data,” NBER Working Paper No. 5301, National Bureau of Economic Research, Cambridge, Massachusetts.
Phipps, Shelley and Peter Burton (1998). “What’s Mine is Yours? The Influence of Male and Female Incomes on Patterns of Household Expenditure,” Economica 65: 599-613.
Psacharopoulos, George and Zafiris Tzannatos (1992). Case Studies on Women’s Employment and Pay in Latin America, World Bank, Washington, D.C.
Quisumbing, Agnes and John Maluccio (1999). “Intrahousehold Allocation and Gender Relations: New Empirical Evidence,” Gender and Development Working Paper Series, No. 2, World Bank, Washington, D.C.
Roldan, Martha (1988). “Renegotiating the Marital Contract: Intrahousehold Patterns of Money Allocation and Women’s Subordination Among Domestic Outworkers in Mexico City” in Daisy Dwyer and Judith Bruce (eds.), A Home Divided: Women and Income in the Third World, Stanford University Press, Palo Alto, pp. 229-247.
Safilios-Rothschild, Constantina (1988). “The Impact of Agrarian Reform on Men’s and Women’s Incomes in Rural Honduras,” in Daisy Dwyer and Judith Bruce (eds.), A Home Divided: Women and Income in the Third World, Stanford University Press, Palo Alto, pp. 216-228.
Sandmo, Agnar (1970). “The Effect of Uncertainty on Saving Decisions,” Review of Economics and Statistics 37: 353-60.
Schmidt-Hebbel, Klaus, Steven Webb, and Giancarlo Corsetti (1992). “Household Saving in Developing Countries: First Cross-Country Evidence,” World Bank Economic Review 6 (3): 529-547.
Sen, Amartya (1990). “Gender and Cooperative Conflicts” in Irene Tinker (ed.), Persistent Inequalities: Women and World Development, Oxford University Press, New York, pp. 123-149.
Smith, Roger (1990). “Factors Affecting Saving, Policy Tools, and Tax Reform: A Review,” IMF Staff Papers 37 (1): 1-70.
Sunden, Annika E. and Brian J. Surette (1998). “Gender Differences in the Allocation of Assets in Retirement Savings Plans,” American Economic Review 88 (2): 207-211.
Taylor, Lance (1983). Structuralist Macroeconomics: Applicable Models for the Third World, Basic Books, New York.
Thomas, Duncan (1992). “The Distribution of Income and Expenditure Within the Household,” IFPRI World Bank Conference on Intrahousehold Resource Allocation: Policy Issues and Research Methods, Washington D.C.
Thomas, Duncan and Chien-Liang Chen (1993). “Income Shares and Shares of Income: Empirical tests of Models of Household Resource Allocations,” Working Paper, RAND Corporation.
Van Wijnbergen, Sweder (1983). “Credit Policy, Inflation, and Growth in a Financially Repressed Economy,” Journal of Development Economics 13 (1 and 2): 45-65.
Wolf, Diane (1988). “Female Autonomy, the Family, and Industrialization in Java,” Journal of Family Issues 9 (1): 85-107.
World Bank (1998). World Development Indicators.
Available Versions of this Item
Gender effects on aggregate saving: A Theoretical and Empirical Analysis. (deposited 03. Jan 2008 05:47)
- Gender effects on aggregate saving: A theoretical and empirical analysis. (deposited 28. Oct 2008 08:02) [Currently Displayed]