Advertisement

Saving Rates of Urban Households in China

  • Agar Brugiavini
  • Guglielmo Weber
  • Binzhen Wu
Chapter

Abstract

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.

Keywords

Housing Market Disposable Income Saving Rate Pension System Urban Household 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Notes

Acknowledgment

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.

References

  1. Ando A, Guiso L, Terlizzese D (1994) Young households savings and the life-cycle of opportunities: evidence from Japan and Italy. In: Ando A, Guiso L, Visco I (eds) Saving and wealth accumulation. Cambridge University Press, Cambridge, pp 163–187CrossRefGoogle Scholar
  2. 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
  3. Attanasio O, Weber G (2010) Consumption and saving: models of intertemporal allocation and their implications for public policy. J Econ Lit 48(3):693–751CrossRefGoogle Scholar
  4. Blanchard O, Giavazzi F (2006) Rebalancing growth in China: a three-handed approach. Chin World Econ 14(4):1–20CrossRefGoogle Scholar
  5. Chamon MD, Prasad ES (2010) Why are saving rates of urban households in China rising? Am Econ J Macroecon 2(1):93–130CrossRefGoogle Scholar
  6. Chan KW, Zhang Li (1999) The hukou system and rural–urban migration: processes and changes. China Quart 160:818–855CrossRefGoogle Scholar
  7. Chan KW, Buckingham W (2008) Is China abolishing the hukou system? China Quart 195:582–606, September 2008Google Scholar
  8. 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
  9. 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
  10. Gao J, Tang S, Tolhurst R, Rao K (2001) Changing access to health services in urban China: implications for equity. Health Policy Plann 16(3):302–312CrossRefGoogle Scholar
  11. Gao J, Raven JH, Tang S (2007) Hospitalisation among the elderly in urban China. Health Policy 84:210–219CrossRefGoogle Scholar
  12. Herd R, Hu-Wei Hu, Koen V (2009) Providing greater old-age security in China. OECD, Economics DepartmentGoogle Scholar
  13. 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
  14. Impavido G, Yu-Wei Hu, Li X (2009) Governance and fund management in the Chinese Pension System. IMF WP/09/246 Google Scholar
  15. Lin W, Liu GG, Chen G (2009) The urban resident basic medical insurance: a landmark reform towards universal coverage in China. Health Econ 18:83–96CrossRefGoogle Scholar
  16. Ministry of Labor and Social Security and CIGNA (1999) The policy options for supplementary medical insurance in China. Mimeo, Paris and BeijingGoogle Scholar
  17. Modigliani F, Cao SL (2004) The Chinese saving puzzle and the life-cycle hypothesis. J Econ Lit 42(1):145–170CrossRefGoogle Scholar
  18. OECD (2010) OECD economic surveys: China. OECD, ParisCrossRefGoogle Scholar
  19. 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
  20. Wei S-J, Zhang X (2011) The competitive saving motive: evidence from rising sex ratios and saving rates in China. J Polit Econ 119(3):511–564CrossRefGoogle Scholar
  21. Xie J, Wu B, Li H, Zhen S (2011) Housing prices and household consumption. Working paper, Tsinghua UniversityGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Ca’ Foscari, University of VeniceVeniceItaly
  2. 2.University of PaduaPaduaItaly
  3. 3.Tsinghua UniversityBeijingChina

Personalised recommendations