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The Saving Behaviour of Two Person Households: Evidence from Dutch Panel Data

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Author Info
Euwals, Rob () (CEPR and IZA, Bonn)
Börsch-Supan, Axel (University of Mannheim, ZEW and NBER)
Eymann, Angelika (University of Mannheim)
Abstract

As wives generally are younger than their husbands, and as they also have a higher life expectancy, wives generally have larger incentives to save for old age than their husbands. This paper analyses the household members’ attitudes towards saving for old age, and the relation with the household saving and portfolio choice behaviour. Based on a panel of two-person households (e.g. with a husband and a wife) from the Dutch CentER Savings Survey, we find that wives find saving for old age more important than their husbands. In a special high-income subsample we find that for this group the household members find saving for old age equally important. The major determinant of both household members’ attitudes is the husband’s mandatory pension rights. Both household members’ attitude relate to the probability of holding annuity and endowment insurances, while only the husband’s attitude relates to the probability of holding stocks. Concerning discretionary household wealth we find evidence for an impact of the husband’s attitude, but no evidence for an impact of the wife’s attitude.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 238.

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Length: 43 pages
Date of creation: Dec 2000
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Handle: RePEc:iza:izadps:dp238

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Related research
Keywords: Savings; pensions; intra-household behaviour;

Other versions of this item:

Find related papers by JEL classification:
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models
D19 - Microeconomics - - Household Behavior - - - Other
D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving

Cited by:
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  1. Felix Freyland, 2005. "Household Composition and Savings: An Overview," MEA discussion paper series 05087, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
  2. Shelly Lundberg & Richard Startz & Steven Stillman, 2001. "The Retirement-Consumption Puzzle: A Marital Bargaining Approach," Working Papers 01-04, RAND Corporation Publications Department. [Downloadable!]
    Other versions:
  3. Freyland, Felix, 2004. "Household Composition and Savings: An Overview," Sonderforschungsbereich 504 Publications 04-69, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim. [Downloadable!]
  4. van Praag, Bernard M.S. & Ferrer-i-Carbonell, Ada, 2001. "Age-Differentiated QALY Losses," IZA Discussion Papers 314, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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