Brothers, household financial markets and savings rate in China

• 成果类型: Article
• 署名作者: Zhou, Weina
• 署名单位: Dalhousie University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2014.07.002
• 发表日期: 2014
• 页码: 34-47
• 关键词: Household savings; family structure; Financial market development

摘要

This study analyzes the effect of the number of brothers an individual has on that individual's household savings rate under the current underdeveloped household financial market in urban China. I show that having an additional brother reduces an individual's household savings rate by at least 5 percentage points. Brothers help households (1) by sharing risks, providing a source of informal borrowing, and (2) by sharing the cost of supporting parents. Sisters play a minor role in affecting a household's savings rate, mainly because of cultural norms. The decline in the average number of brothers in households induced by population policies explained at least one-third of the increased aggregate household savings rate in urban China. (C) 2014 Elsevier B.V. All rights reserved.