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Children and Household Savings in the Philippines

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  • Orbeta, Aniceto Jr. C.

Abstract

This paper examines the relationship between household savings and family size. Household savings are important indicators for family welfare not only in terms of its investment and income generation prospects but also, and perhaps more importantly given pervasive borrowing constraints and limited social security coverage, because it provides protection from income shortfalls. Descriptive and multivariate evidence on the relationship of household savings and family size are provided. The endogeneity of family size in the household savings equation, as argued for in the old-age security hypothesis, is properly considered by using instrumental variables estimation technique. The paper uses a recent nationally representative household survey in the analysis. The results show that, on average, the impact of additional children on household savings is negative and that the impact is regressive.

Suggested Citation

  • Orbeta, Aniceto Jr. C., 2006. "Children and Household Savings in the Philippines," Discussion Papers DP 2006-14, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:dpaper:dp_2006-14
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    File URL: https://serp-p.pids.gov.ph/serp-p/download.php?d=3765&s=3
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    References listed on IDEAS

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    1. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
    2. Lall, Somik V. & Suri, Ajay & Deichmann, Uwe, 2005. "Household savings and residential mobility in informal settlements," Policy Research Working Paper Series 3596, The World Bank.
    3. Aniceto C. Orbeta, 2006. "Poverty, Vulnerability and Family Size: Evidence from the Philippines," Chapters,in: Poverty Strategies in Asia, chapter 6 Edward Elgar Publishing.
    4. Gersovitz, Mark, 1988. "Saving and development," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 10, pages 381-424 Elsevier.
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    6. Orbeta, Aniceto Jr. C., 2005. "Children and the Labor Force Participation and Earnings of Parents in the Philippines," Discussion Papers DP 2005-20, Philippine Institute for Development Studies.
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    12. Aniceto C. Orbeta Jr., 2009. "Number of children and their education in Philippine households," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 46(2), pages 123-154, December.
    13. Hubbard, R Glenn, 1986. "Pension Wealth and Individual Saving: Some New Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 18(2), pages 167-178, May.
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    Citations

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    Cited by:

    1. Rachel H. Racelis & J.M Ian S. Salas, 2007. "Measuring Economic Lifecycle and Flows across Population Age Groups : Data and Methods in the Application of the NTA in the Philippines," Development Economics Working Papers 22682, East Asian Bureau of Economic Research.
    2. Dmitry Kulikov & Karsten Staehr, "undated". "Microeconometric analysis of household saving in Estonia: income, wealth, financial exposure," Bank of Estonia Working Papers wp2007-8, Bank of Estonia, revised 03 Feb 2015.
    3. Ismail, Aisha & Rashid, Kashif, 2013. "Determinants of household saving: Cointegrated evidence from Pakistan (1975–2011)," Economic Modelling, Elsevier, vol. 32(C), pages 524-531.

    More about this item

    Keywords

    Philippines; family size; household savings;

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • D10 - Microeconomics - - Household Behavior - - - General
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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