Does Gender have any Effect on Aggregate Saving? An empirical analysis

Abstract

This study investigates the effects of gender on aggregate saving. We test the hypothesis that shifts in women's relative income, which can affect their bargaining power within the household, have a discernible impact on household saving and, by extension, gross domestic saving, due to differing saving propensities by gender. The empirical analysis is based on panel data for a set of semi-industrialised economies, covering the period 1975-95. The results indicate that, as some measures of women's relative income and bargaining power increase, gross domestic saving rates rise. The implied gender disparity in saving propensities may be linked to differences in saving motives based on gender roles, and well as divergent experiences of economic vulnerability. These findings suggest the importance of understanding gender differences in planning for savings mobilisation and in the formulation of financial and investment policies.

Psychological Foundations of Financial Planning for Retirement

“…• Savings contributions will be predicted by income (Bassett et al 1998;Grable and Lytton 1997) financial planning activity level (Lusardi 1999;Neukam 2002) and gender (Seguino and Floro 2003;Sunden and Surette 1998). The rationale for these hypotheses stems from the notion that (a) one's level of income will influence the likelihood of having discretionary resources for saving purposes, (b) engaging in planning activities will help define how much one can afford to allocate to a retirement savings plan, and (c) men have been demonstrated to be more actively involved in saving and investing than women.…”

The Impact of Gender Inequality in Education and Employment on Economic Growth: New Evidence for a Panel of Countries

“…These could include higher savings as women and men differ in their savings behaviour (e.g. Stephanie Seguino and Maria Sagrario Floro 2003), more productive investments and use and repayment of credit (see Janet Stosky 2006), and higher investments in the health and education of their children, thus promoting human capital of the next generation and therefore economic growth (e.g. Thomas 1997;World Bank 2001).…”

Gender and its Relevance to Macroeconomic Policy: A Survey

“…Against this backdrop, Seguino and Floro (2003) explore the differences in savings behavior among men and women in developing countries. They suggest that women may have greater incentives to save than men for several reasons, largely reflecting women's role as the principal "home builders."…”

“…Most of this work has focused on developed countries owing to an absence of appropriate savings data in developing countries. Using macroeconomic data, Seguino and Floro (2003) examine differences in aggregate savings ratios, using panel data on a group of semi-industrialized countries over the period of 1975-1995. 9 They find that women's wage share relative to men is positive and significantly related to savings.…”