Factors Related to Saving Behavior among Low-Income Households in the 1995-2007 Survey of Consumer Finances
Heckman, S., & Hanna, S.D. (2012). Factors Related to Saving Behavior among Low-Income Households in the 1992-2007 Survey of Consumer Finances. Proceedings of the Academy of Financial Services
37 Pages Posted: 20 Nov 2012
Date Written: October 4, 2012
This study explored saving behavior among low-income households through the institutional theory of saving behavior by (1) determining asset differences between saving and non-saving households, (2) exploring factors related to saving behavior, and (3) identifying differences between two saving measures: a broad measure and a narrow measure.
Based on the narrow measure, 43% of households under 300% of the poverty threshold saved, but 75% of these households saved based on the broad measure. Most of the multivariate results were consistent with hypotheses based on the institutional theory of savings, with the most important result that was not consistent was that racial/ethnic groups other than white were more likely to be savers under the broad measure than otherwise similar white households.
Keywords: Savings, Life Cycle Theory, Institutional Theory
JEL Classification: D12, D14, D91, E21
Suggested Citation: Suggested Citation