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Household saving and labor informality: the case of Chile

Author

Listed:
  • Alfredo Schclarek
  • Mauricio Caggia

Abstract

The purpose of this paper is to compare the saving behavior of formal and informal workers. In addition, we provide a socioeconomic and financial characterization of informal workers. We use the Financial Household Survey conducted by the Central Bank of Chile in 2007 and have between 2.533 and 1.740 observations of urban households from Chile, depending on the savings definition and the informality definition that is used. We perform both OLS and probit regressions. Our cross-section regression results indicate that in general informal households save less than formal households. Further, descriptive data indicates that informal workers have less access to financial services and possess less financial assets and liabilities. In terms of policy implications, the results suggest that combating informality may have positive consequences on the aggregate saving rate.

Suggested Citation

  • Alfredo Schclarek & Mauricio Caggia, 2017. "Household saving and labor informality: the case of Chile," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 20(3), pages 052-080, December.
  • Handle: RePEc:chb:bcchec:v:20:y:2017:i:3:p:052-080
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    Cited by:

    1. Francesco Grigoli & Alexander Herman & Klaus Schmidt-Hebbel, 2017. "Is Private Saving in Latin America and the Caribbean Different?," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1255-1280, November.
    2. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2018. "Determinants of Formal and Informal Saving in Colombia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean, edition 1, volume 1, chapter 4, pages 95-123, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    3. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2018. "Factores determinantes del ahorro formal e informal en Colombia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Decisiones financieras de los hogares e inclusión financiera: evidencia para América Latina y el Caribe, edition 1, volume 1, chapter 4, pages 101-131, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    4. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2016. "Ahorro de los hogares de ingresos medios y bajos de las zonas urbana y rural en Colombia," Borradores de Economia 960, Banco de la Republica de Colombia.

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    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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