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

See all articles by Stuart Heckman

Stuart Heckman

Ohio State University

Sherman D. Hanna

Ohio State University (OSU)

Date Written: October 4, 2012

Abstract

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

Heckman, Stuart and Hanna, Sherman D., Factors Related to Saving Behavior among Low-Income Households in the 1995-2007 Survey of Consumer Finances (October 4, 2012). 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. Available at SSRN: https://ssrn.com/abstract=2178264

Stuart Heckman

Ohio State University ( email )

United States
614-292-4389 (Phone)

Sherman D. Hanna (Contact Author)

Ohio State University (OSU) ( email )

1787 Neil Avenue
Campbell 265D
Columbus, OH 43210
United States
614-292-4584 (Phone)

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