Income Uncertainty and Household Savings in China

Marcos Chamon, Kai Liu, and Eswar Prasad

Income Uncertainty and Household Savings in China

China’s household saving rate has increased markedly since the mid-1990s and the age-savings profile has become U-shaped. The authors find that rising income uncertainty and pension reforms help explain both of these phenomena. Using a panel of Chinese households covering the period 1989-2006, the...
Topics: 
Economy, Society
Keywords: 
Savings