Income uncertainty and household savings in China

Abstract

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Chinese outbound travel: Understanding the socioeconomic drivers

“…This could be explained by the fact that due to rapid economic development and social transformation, people in China may be perceiving a high level of uncertainty about the future (Chamon, Liu, & Prasad, 2010). Therefore, real earning, rather than any AIC, would determine whether a person has the affordability for a foreign country travel, as well as the person 0 s intention to travel to a foreign country.…”

Political uncertainty and household savings

“…For implications of uncertainty of consumption over the life cycle, see Gourinchas and Parker (2002). Chamon, Liu and Prasad (2013) show that a sharp increase in income uncertainty in late 1990s, largely due to an increase in the variance in household income attributed to transitory idiosyncratic shocks, could account for two-thirds of the increase in China's urban household saving rate in the same period.…”

Pension Coverage for Parents and Educational Investment in Children: Evidence from Urban China

“…In particular, under the new pension system, employees under the state owned enterprises are offered lower replacement rates than in the old system (Salditt et al, 2008;Sin, 2005). The decline in the replacement rate for employees of state-owned enterprises is associated with higher savings (Chamon, et al, 2010;Feng, et al, 2011), which in turn may affect education expenditures. To allow for the potential impact on children with parent in employed in state owned enterprises, we use them as an additional -treatment‖ group.…”