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An Overlooked Explanation of the Declining Saving Rate

Author

Listed:
  • Brenner, R
  • Dagenais, Marcel G
  • Montmarquette, C

Abstract

With a socioeconomic model of the determinants of savings that takes into account variables reflecting the abrupt changes in the divorce rate that occurred during the 1970s and the 1980s in the U.S., the increase in women's participation in the labor force, and their greater investment in education, we explain part of the measured decline in the saving rate. The uncertainty generated by the increased likelihood of divorces encourages households and women, in particular, to substitute human capital to financial or physical capital for precautionary savings.

Suggested Citation

  • Brenner, R & Dagenais, Marcel G & Montmarquette, C, 1994. "An Overlooked Explanation of the Declining Saving Rate," Empirical Economics, Springer, vol. 19(4), pages 629-637.
  • Handle: RePEc:spr:empeco:v:19:y:1994:i:4:p:629-37
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    Citations

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    Cited by:

    1. Rita Canu & Giuseppe Tattara, 2005. "Quando le farfalle mettono le ali. Osservazioni sull'ingresso delle donne nel lavoro dipendente," Economia & lavoro, Carocci editore, issue 2, pages 1-67.
    2. Rodica IANOLE & Elena DRUICA, 2015. "Testing the Keynesian consumption hypothesis on European panel data," Romanian Journal of Economics, Institute of National Economy, vol. 40(1(49)), pages 49-71, june.
    3. repec:ine:journl:v:40:y:2015:i:49:p:21-44 is not listed on IDEAS
    4. Floro, Maria & Seguino, Stephanie, 2002. "Gender effects on aggregate saving: A Theoretical and Empirical Analysis," MPRA Paper 6541, University Library of Munich, Germany, revised Dec 2000.
    5. Berg, Lennart, 1996. "Age Distribution, Saving and Consumption in Sweden," Working Paper Series 1996:22, Uppsala University, Department of Economics.
    6. Yunhee Chang & Ki Lee, 2006. "Household Debt and Marital Instability: Evidence from the Korean Labor and Income Panel Study," Journal of Family and Economic Issues, Springer, vol. 27(4), pages 675-691, December.

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