Saving Rates of Urban Households in China
Urban household saving rates in China have been rising over time and display a U-shaped age profile. Using micro data, we document how they relate to a number of factors, including household composition, migration history and housing tenure. We then investigate the role of the pension reforms introduced in several years in various provinces and find a response in line with the prediction of the life-cycle model but of different magnitude in different provinces.
KeywordsHousing Market Disposable Income Saving Rate Pension System Urban Household
We would like to thank Chongen Bai for helpful discussions and Hongbin Li for comments, encouragement and help in gaining access to the UHS data. We are also grateful to workshop participants, and in particular to Ignazio Musu, for comments and suggestions.
- Attanasio OP, Banks J, Meghir C, Weber G (1999) Humps and bumps in life-time consumption. J Bus Econ Stat 17(1):22–35Google Scholar
- Chan KW, Buckingham W (2008) Is China abolishing the hukou system? China Quart 195:582–606, September 2008Google Scholar
- Di Stefano E (2012) Demographic Trends and Sustainability of the Old-Age Security System in China: in G. Gomel et al. (eds.), The Chinese Economy, Springer-Verlag Berlin Heidelberg 2012Google Scholar
- Feng J, He L, Sato H (2011) Public pension and household saving: evidence from China. J Comp Econ 39(4), 470-485 December 2011Google Scholar
- Herd R, Hu-Wei Hu, Koen V (2009) Providing greater old-age security in China. OECD, Economics DepartmentGoogle Scholar
- Horioka, CY, Wan J (2007) The determinants of household saving in China: a dynamic panel analysis of provincial data. Journal of Money, Credit and Banking 39(8): 2077–2096Google Scholar
- Impavido G, Yu-Wei Hu, Li X (2009) Governance and fund management in the Chinese Pension System. IMF WP/09/246 Google Scholar
- Ministry of Labor and Social Security and CIGNA (1999) The policy options for supplementary medical insurance in China. Mimeo, Paris and BeijingGoogle Scholar
- Song, ZM, Yang DT (2010) Life-cycle earnings and the household saving puzzle in a fast-growing economy. Working paper, Chinese University of Honk KongGoogle Scholar
- Xie J, Wu B, Li H, Zhen S (2011) Housing prices and household consumption. Working paper, Tsinghua UniversityGoogle Scholar