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The Impact of Sex Ratios before Marriage on Household Saving in Two Asian Countries: The Competitive Saving Motive Revisited

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  • Horioka, Charles Yuji

    (Osaka University)

  • Terada-Hagiwara, Akiko

    (Asian Development Bank)

Abstract

This paper estimates a household saving rate equation for India and the Republic of Korea using long-term time series data for the 1975–2010 period, focusing in particular on the impact of the premarital sex ratio on the household saving rate. To summarize the main findings of the paper, it finds that the premarital sex (or gender) ratio (the ratio of males to females) has a significant impact on the household saving rate in both India and the Republic of Korea, even after controlling for the usual suspects such as the aged and youth dependency ratios and income. It has a negative impact in India, where the bride’s side has to pay substantial dowries to the groom’s side at marriage, but a positive impact in the Republic of Korea, where, as in the People’s Republic of China, the groom’s side has to bear a disproportionate share of marriage-related expenses including purchasing a house or condominium for the newlywed couple.

Suggested Citation

  • Horioka, Charles Yuji & Terada-Hagiwara, Akiko, 2016. "The Impact of Sex Ratios before Marriage on Household Saving in Two Asian Countries: The Competitive Saving Motive Revisited," ADB Economics Working Paper Series 494, Asian Development Bank.
  • Handle: RePEc:ris:adbewp:0494
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    Cited by:

    1. Charles Yuji Horioka, 2021. "Is the selfish life-cycle model more applicable in Japan and, if so, why? A literature survey," Review of Economics of the Household, Springer, vol. 19(1), pages 157-187, March.
    2. S Anukriti & Sungoh Kwon & Nishith Prakash, 2018. "Household Savings and Marriage Payments: Evidence from Dowry in India," Working papers 2018-09, University of Connecticut, Department of Economics.
    3. Barua, Rashmi & Goel, Prarthna & Sane, Renuka, 2017. "The Effect of Age-Specific Sex Ratios on Crime: Instrumental Variable Estimates from India," Working Papers 17/214, National Institute of Public Finance and Policy.
    4. Grossbard, Shoshana, 2016. "Marriage and Marriage Markets," IZA Discussion Papers 10312, Institute of Labor Economics (IZA).
    5. Momoe Makino, 2019. "Dowry in the absence of the legal protection of women’s inheritance rights," Review of Economics of the Household, Springer, vol. 17(1), pages 287-321, March.

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    More about this item

    Keywords

    age structure of the population; competitive saving motive; dowries; gender ratio; household saving rate; India; life cycle hypothesis; marriage expenses; population control; premarital sex ratio; Republic of Korea; saving for education; saving for marriage; saving rate; sex ratio; son preference; wedding expenses;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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