The Impact of Family Size on Savings and Consumption Expenditure of Industrial Workers: A Cross-Sectional Study

Abstract

The present study investigated and analysed the impact of family size on monthly savings and consumption expenditure of the industrial workers. The results showed that with increasing household size, savings not only dwindled in absolute terms but also in relative terms as witnessed by decreasing saving to income ratios. Conversely, the consumption to income ratios witnessed an increasing pattern, which is indicative of income being diverted away from savings with every addition to the family size. The MANOVA post hoc analyses revealed that the mean monthly savings of each of the higher family size group (more than 3 members) were observed to be significantly lower than the smallest family group (3 members), which is symptomatic of low propensity towards saving in context of the workers with higher family size. Though, the mean monthly consumption expenditure of family size of 4, 5 and 6 members was observed to be significantly higher than that of the largest family group (7 members), however its consumption income ratio was observed to be greater than that of all the lower family size groups. This is logically plausible as the workers having the largest family size were observed to have the lowest mean monthly income, thereby implying the presence of large number of economically inactive members in this group, which resulted in diversion of a large part of their income towards their consumption expenses. The results of the ANOVA regression analysis confirmed that family size has a significant positive impact on the consumption expenditure of the industrial workers. Further, the reduction of savings due to increased burden of the additional family member corroborated the proposed negative effect of family size on savings of the workers.

The Impact of Remittance on Consumption and Investment: A Case of Province Five of Nepal

“…The family size is defined by the number of people living together in a house. Kiran and Dhawan (2015) examined the impact of family size on savings and consumption expenditure of the industrial workers. The study concluded that the saving income ratios of the workers followed a decreasing trend with the rise in the size of the family.…”

Comparative Perspective Decisions of Traditional Fisherman by using Outboard Motor and Non-Powered Motor in Choosing Empower Capture Fish Processing Business

“…This means that the higher the number of working family members, the stronger the tendency of the decision of traditional boat fisherman without a motor to choose the empowerment effort, while for the traditional boat fisherman with motorboat, there is no significant effect. According to Kiran and Dhawan [25], family size has a significant impact on household consumption expenditure which also affects the decision of family members in the household.…”

The Approach of Logit Model to the Decision Making of Small-Scale Fisherman?s Wives.

“…Conversely, the variable quantitiy of family members borne in the household has a negative and significant effect on the 5% error rate on the decisions of small-scale fishermen's wives. Family size has a significant positive impact on household consumption expenditure (Kiran and Dhawan, 2015) so that it can have an impact on the decisions of family members in the household.…”