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Income Uncertainty and Self-Reported Precautionary Wealth: Evidence from the Japanese Micro Data


  • Wako Watanabe


Using unique survey data which includes information on precautionary wealth and its target, we analyze the precautionary saving behavior of Japanese households. Our findings are: 1. Measures for income uncertainty have a positive influence on the target for precautionary wealth but not on precautionary wealth. 2. The positive influence of income uncertainty on the target vanishes when older households with a head aged 51 or older are included in the sample. These findings suggest that Japanese households save against income uncertainty until around when their head is aged 50 and then save against other risks such as the longevity risk.

Suggested Citation

  • Wako Watanabe, 2005. "Income Uncertainty and Self-Reported Precautionary Wealth: Evidence from the Japanese Micro Data," ISER Discussion Paper 0636, Institute of Social and Economic Research, Osaka University.
  • Handle: RePEc:dpr:wpaper:0636

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    References listed on IDEAS

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    Cited by:

    1. Bessho, Shun-ichiro & Tobita, Eiko, 2008. "Unemployment risk and buffer-stock saving: An empirical investigation in Japan," Japan and the World Economy, Elsevier, vol. 20(3), pages 303-325, August.

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