Timerga, Genanew and Gotu, Butte and Alem, Yegnanew (2011): Statistical analysis of saving habits of employees: a case study at Debre Birhan Town in North Shoa, Ethiopia.
Download (1MB) | Preview
Saving represents one of the most predictable determinants of successful personal and economic development. People desire to save although they tend to postpone saving until they have higher-paying jobs or some stability in their lives. However, in developing countries, where opportunities for structured and institutionalized saving are rare, people could perhaps begin saving earlier than expected. The purpose of this study has been to assess saving habits and identify factors that influence the saving habits of employees at Deber Birhan town. A sample of 480 was collected from employees on saving habit at Debre Birhan town during February, 2010 to October, 2011. Saving habit was measured according to multi method tool that incorporates self report, visual analog scale and economic identification test. Descriptive, Binary logistic regression and Bayesian statistical methods were used. The result indicates that 47.29% employees had no saving experience and 52.71% of the respondents have been involved in saving part of their income. It was also found that government employees have lower saving habits than the private employees. The results obtained from the analysis of binary logistic regression indicate that age, education, number of dependent family members, transport service, job satisfaction in the sector, cost of expenditures and inflation significantly affect the saving habits of employees. Being a member of saving association, cost of recreation and housing are also significantly related with saving habits of employees. Results from binary logistic regression indicate that after controlling other variables in the model, the odds of saving decreases for instance by 43.4% for one unit increases in number of dependent family members. Employees who had job satisfaction in the sector were less likely to be in no saving habit with odds 2.491. The result from Bayesian analysis indicates that monthly salary, distance from home to work place and supporting others with money were significant predictors of saving habits. Furthermore, education, number of dependent family members, cost of expenditures and monthly salary are important factors affecting saving habits of employees.
|Item Type:||MPRA Paper|
|Original Title:||Statistical analysis of saving habits of employees: a case study at Debre Birhan Town in North Shoa, Ethiopia|
|Keywords:||Bayesian Logistic Analysis, Binary Logistic Regression, Saving Habit|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C11 - Bayesian Analysis: General
|Depositing User:||Yegnanew Shiferaw|
|Date Deposited:||31. Oct 2012 21:35|
|Last Modified:||12. Feb 2013 06:15|
Agresti, A. (2002). An Introduction to Categorical Data Analysis. John Wiley and So, Inc.
Andrew, Coleman. (2008). Inflation and The Measurement of Saving and Housing Affordability.
Befekadu Kereta. (2007). Outreach and Financial Performance Analysis of Microfinance Institutions in Ethiopia.
Beverly, S., & Clancy M. (2001). Financial Education in A Children and Youth Savings Account Policy Demonstration: Issues and Options (Research Background Paper 01-5). St. Louis, MO: Washington University, Center for Social Development.
Bewick, L. and Jonathan, B. (2005). Statistics Review 14: Logistic Regression.
Central Statistical Agency (CSA), (2008). Summary and Statistical Report of Population and Housing Census Results. 2007. Addis Ababa, Ethiopia.
Cochran, W.G., (1977): Sampling Techniques. Third Edition, John Wiley and Sons (ASIA) Pte Ltd., Singapore.428p
Congdon P. (2005). Bayesian Models for Categorical Data, Queen Mary, University, UK
David P.M. Scollnik (2006). Bayesian Reserving Models Inspired by Chain Ladder Methods and Implemented Using Winbugs, Department of Mathematics and Statistics, University of Calgary, Canada.
Feifei Wang, (2010). A Comparison of Employee Saving Motives Between Chinese and Americans
Gardiol A. L., Yang X. B., and Carriquiry A. L. (2002). Bayesian Logistic Regression of Soybean Sclerotinia Stem Rot Prevalence in the U.S. North-Central Region: Accounting for Uncertainty in Parameter Estimation, Kearney Agricultural.
Gebeyaw Aychile, (2008). Financial Performance of National Bank of Ethiopia Workers’ Savings and Credit Association with Special Emphasis to Adjustments
Gerlach, R. B. and Hall A. (2007). A Bayesian Approach to Variable Selection in Logistic Regression with Application to Predicting Earnings Direction from Accounting Information School of Finance & Economics, University of Technology, Australia
Gill.J (2004). Bayesian Methods for The Social and Behavioral Science Approach, Academic Price, Inc Gokhale, (2000). ‘Personal Saving in Developing Nations, Further Evidence’.
Greenwald, Grinstein-Weiss, M. Zhan, and M. Sherraden, (2001). Saving Performance in Individual Development Accounts: Does Marital Status Matter? Journal of Marriage and Family, 68(1), 192-204.
Hosmer and Lemeshow (1998). Applied Logistic Regression, 2nd Ed., University of Massachusetts and the Ohio State University, Massachusetts and Columbus http: //www.Bu.Cam.Uk/Winbugs/Cont.Shml (Accessed On 12 August 2011).
Jong-Youn Rha, Catherine P. Montalto, and Sherman D. Hanna, (2006). The Effect of Self-Control Mechanisms on Household Saving Behavior
Karim Moussaly, (2010). Participation in Private Retirement Savings Plans, 2008
Kassa Woldesenbet (1998). Impact Analysis of Southern Ethiopia Micro Enterprise Project on Beneficiaries, Social & Economic. A Paper Presented to the National Micro Enterprise Work Shop (Amharic Version), Addis Ababa.
Marjerison W. M., Jr. (2006). Bayesian Logistic Regression with Spatial Correlation: An Application to Tennessee River Pollution, Masters of Science in Applied Statistics, Worcester Polytechnic Institute
Masson, P., Bayoumi, T. And Samiei, H. (1998). International Evidence on the Determinants of Private Saving, the World Bank Economic Review, 14 (3):393
Mengistu Bediye (1997). Determinants of Micro Enterprises Loan Repayment and Efficiency of Screening Mechanism in Urban Ethiopia: The Case of Bahirdar & Awassa Towns, Department of Economics, Addis Ababa University.
Merkle, E., Sheu, C. And Trisha, G. (2005). Simulation-Based Bayesian Inference Using Winbugs. Winbugs Tutorial Outline: Michael Sherraden, Mark Schreiner, Margaret Clancy, Lissa Johnson, Jami Curley, Michal Grinstein-Weiss, Min Zhan, Sondra Beverly, 2001. Savings and Asset Accumulation in Individual Development Account
Pelrine, Richard and Olive Kabatalya, (2005). “Savings Habits, Needs and Priorities in Urban Uganda” Kampala: USAID/Rural SPEED.
Sherraden, M. S., Johnson, L., Elliott, W., Porterfield, S., & Rainford W. (2007). School Based Children’s Saving Accounts for College: The I can Save Program. Children and Youth Services Review, 29(3), 294-312.
Solomon, Lewis C. (1975). The Relation Between Schooling and Savings Behavior: In Education, Income and Human Behavior, Edited by, F. Thomas Juster (253-293), New York: Mcgraw Hill Book
Ziorklui S.Q and Barbee W (2003). Financial Sector Reforms Strategies and Financial Savings in SSA, Savings and Development, Issue 1