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Precautionary savings and the self-employed

Author

Listed:
  • Mariacristina Rossi

    () (School of Management and Economics)

  • Dario Sansone

    () (Georgetown University)

Abstract

This work focuses on the impact of uncertainty on savings under bequest form. Specifically, we estimate whether and to what extent income variability does have an effect on post-mortem savings. We approximate the post-mortem savings with the closest dedicated savings, which is savings in term insurance, a lump sum inherited at the death of the subscriber. Furthermore, we test whether the intensity of the income variance or the riskiness of the job type—such as self-employment—matters more in the choice. Our results show that self-employment status is one of the most relevant variables affecting term insurance ownership.

Suggested Citation

  • Mariacristina Rossi & Dario Sansone, 2018. "Precautionary savings and the self-employed," Small Business Economics, Springer, vol. 51(1), pages 105-127, June.
  • Handle: RePEc:kap:sbusec:v:51:y:2018:i:1:d:10.1007_s11187-017-9919-x
    DOI: 10.1007/s11187-017-9919-x
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