IDEAS home Printed from https://ideas.repec.org/p/eea/boewps/wp2020-1.html
   My bibliography  Save this paper

Joint and individual savings within families: evidence from bank accounts

Author

Listed:
  • Merike Kukk
  • W. Fred van Raaij

Abstract

In this paper, we investigate the ownership of financial assets within families and how pooling affects the individual savings of the partners. We use anonymised monthly transactional data from ING Bank to observe the financial data of Dutch couples for 2014–2016. We find that savings are quite equally allocated in almost half of households but in one-fifth of households there is only one partner who owns an individual account. The estimations show that joint savings contribute to a more equal division of savings since they are held equally. However, we find larger differences in individual savings among partners who pool, suggesting that the use of joint savings does not lead to individual savings being more evenly distributed, but rather to the opposite. The pattern is more apparent for households in their 20s and for saving accounts. The results of the study highlight the need to understand how families make decisions about applying the sharing rule to joint and individual savings

Suggested Citation

  • Merike Kukk & W. Fred van Raaij, 2020. "Joint and individual savings within families: evidence from bank accounts," Bank of Estonia Working Papers wp2020-1, Bank of Estonia, revised 18 May 2020.
    • Handle: RePEc:eea:boewps:wp2020-1
    DOI: 10.23656/25045520/012021/0174
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.23656/25045520/012021/0174
    Download Restriction: no
    File URL: https://libkey.io/10.23656/25045520/012021/0174?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Laurens Cherchye & Bram De Rock & Arthur Lewbel & Frederic Vermeulen, 2015. "Sharing Rule Identification for General Collective Consumption Models," Econometrica, Econometric Society, vol. 83(5), pages 2001-2041, September.
    2. Pahl, Jan, 2008. "Family finances, individualisation, spending patterns and access to credit," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(2), pages 577-591, April.
    3. Sara Cantillon & Bertrand Maître & Dorothy Watson, 2016. "Family Financial Management and Individual Deprivation," Journal of Family and Economic Issues, Springer, vol. 37(3), pages 461-473, September.
    4. Sierminska, Eva M. & Frick, Joachim R. & Grabka, Markus M., 2010. "Examining the gender wealth gap," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 62(4), pages 669-690.
    5. Richard Blundell & Pierre-Andre Chiappori & Thierry Magnac & Costas Meghir, 2007. "Collective Labour Supply: Heterogeneity and Non-Participation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(2), pages 417-445.
    6. Phipps, Shelley & Woolley, Frances, 2008. "Control over money and the savings decisions of Canadian households," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(2), pages 592-611, April.
    7. Jaanika Meriküll & Merike Kukk & Tairi Rõõm, 2021. "Correction: What explains the gender gap in wealth? Evidence from administrative data," Review of Economics of the Household, Springer, vol. 19(2), pages 549-550, June.
    8. Ashby, Katherine J. & Burgoyne, Carole. B., 2009. "The financial practices and perceptions behind separate systems of household financial management," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(3), pages 519-529, June.
    9. Richard Blundell & Pierre-Andre Chiappori & Thierry Magnac & Costas Meghir, 2007. "Collective Labour Supply: Heterogeneity and Non-Participation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(2), pages 417-445.
    10. Ashby, Katherine J. & Burgoyne, Carole B., 2008. "Separate financial entities?: Beyond categories of money management," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(2), pages 458-480, April.
    11. Jungmin Lee & Mark L. Pocock, 2007. "Intrahousehold allocation of financial resources: evidence from South Korean individual bank accounts," Review of Economics of the Household, Springer, vol. 5(1), pages 41-58, March.
    12. Frances Woolley, 2000. "Control over Money in Marriage," Carleton Economic Papers 00-07, Carleton University, Department of Economics, revised 2003.
    13. Fred van Raaij, W. & Antonides, Gerrit & Manon de Groot, I., 2020. "The benefits of joint and separate financial management of couples," Journal of Economic Psychology, Elsevier, vol. 80(C).
    14. Richard Blundell & Pierre-André Chiappori & Costas Meghir, 2005. "Collective Labor Supply with Children," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1277-1306, December.
    15. Sonnenberg, Stefanie J., 2008. "Household financial organisation and discursive practice: Managing money and identity," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(2), pages 533-551, April.
    16. Burgoyne, Carole B. & Reibstein, Janet & Edmunds, Anne & Dolman, Valda, 2007. "Money management systems in early marriage: Factors influencing change and stability," Journal of Economic Psychology, Elsevier, vol. 28(2), pages 214-228, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jaanika Meriküll & Merike Kukk & Tairi Rõõm, 2021. "What explains the gender gap in wealth? Evidence from administrative data," Review of Economics of the Household, Springer, vol. 19(2), pages 501-547, June.
    2. Jaanika Meriküll & Merike Kukk & Tairi Rõõm, 2021. "What explains the gender gap in wealth? Evidence from administrative data," Review of Economics of the Household, Springer, vol. 19(2), pages 501-547, June.
    3. Lars Evertsson & Charlott Nyman, 2014. "Perceptions and Practices in Independent Management: Blurring the Boundaries Between “Mine,” “Yours” and “Ours”," Journal of Family and Economic Issues, Springer, vol. 35(1), pages 65-80, March.
    4. Cherchye, Laurens & Cosaert, Sam & De Rock, Bram & Kerstens, Pieter Jan & Vermeulen, Frederic, 2018. "Individual welfare analysis for collective households," Journal of Public Economics, Elsevier, vol. 166(C), pages 98-114.
    5. Laurens Cherchye & Thomas Demuynck & Bram De Rock & Frederic Vermeulen, 2017. "Household Consumption When the Marriage Is Stable," American Economic Review, American Economic Association, vol. 107(6), pages 1507-1534, June.
    6. Jaanika Meriküll & Merike Kukk & Tairi Rõõm, 2021. "What explains the gender gap in wealth? Evidence from administrative data," Review of Economics of the Household, Springer, vol. 19(2), pages 501-547, June.
    7. José L. Casco, 2024. "Intra-household resource shares under poverty transfers: evidence from Ecuador," Review of Economics of the Household, Springer, vol. 22(3), pages 1243-1274, September.
    8. Juan Carlos Campaña & José Ignacio Giménez-Nadal & José Alberto Molina & Jorge Velilla, 2024. "The shifters of intrahousehold decision-making in European countries," Empirical Economics, Springer, vol. 66(3), pages 1055-1101, March.
    9. Jeremy Lise & Ken Yamada, 2019. "Household Sharing and Commitment: Evidence from Panel Data on Individual Expenditures and Time Use," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(5), pages 2184-2219.
    10. Hubner, Stefan, 2023. "Identification of unobserved distribution factors and preferences in the collective household model," Journal of Econometrics, Elsevier, vol. 234(1), pages 301-326.
    11. José Alberto Molina & Jorge Velilla & Helena Ibarra, 2023. "Intrahousehold Bargaining Power in Spain: An Empirical Test of the Collective Model," Journal of Family and Economic Issues, Springer, vol. 44(1), pages 84-97, March.
    12. Linda Kridahl & Ann-Zofie Duvander, 2023. "Financial Disagreements and Money Management Among Older Married and Cohabiting Couples in Sweden," Journal of Family and Economic Issues, Springer, vol. 44(2), pages 394-411, June.
    13. Wiktor Adamowicz & Mark Dickie & Shelby Gerking & Marcella Veronesi & David Zinner, 2014. "Household Decision Making and Valuation of Environmental Health Risks to Parents and Their Children," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 1(4), pages 481-519.
    14. Jeremy Lise & Shannon Seitz, 2011. "Consumption Inequality and Intra-household Allocations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(1), pages 328-355.
    15. Olivier Bargain & Nicolas Moreau, 2002. "Is the collective model of labor supply useful for tax policy analysis ? A simulation exercise," DELTA Working Papers 2002-21, DELTA (Ecole normale supérieure).
    16. Pierre-André Chiappori & Monica Costa Dias & Costas Meghir, 2018. "The Marriage Market, Labor Supply, and Education Choice," Journal of Political Economy, University of Chicago Press, vol. 126(S1), pages 26-72.
    17. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    18. Laurens Cherchye & Bram De Rock & Arthur Lewbel & Frederic Vermeulen, 2015. "Sharing Rule Identification for General Collective Consumption Models," Econometrica, Econometric Society, vol. 83(5), pages 2001-2041, September.
    19. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2012. "Married with Children: A Collective Labor Supply Model with Detailed Time Use and Intrahousehold Expenditure Information," American Economic Review, American Economic Association, vol. 102(7), pages 3377-3405, December.
    20. Jaime Andrés Sarmiento Espinel, 2012. "Parental investment in their children’s education," Serie documentos de trabajo del Centro de Estudios Económicos 2012-09, El Colegio de México, Centro de Estudios Económicos.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eea:boewps:wp2020-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peeter Luikmel (email available below). General contact details of provider: https://edirc.repec.org/data/epgovee.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.