Intergenerational precautionary savings in Europe

Scervini, Francesco and Trucchi, Serena ORCID: https://orcid.org/0000-0002-1932-7201 2022. Intergenerational precautionary savings in Europe. Oxford Bulletin of Economics and Statistics 84 (2) , pp. 427-450. 10.1111/obes.12461

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Abstract

In this paper, we study whether precautionary saving motives have an intergenerational component; namely whether and to what extent the income uncertainty of younger generations affects the savings of their parents. To this end, we exploit a cross-country European longitudinal household dataset collecting information on parents and their and offspring, augmented with indicators for their offspring’s income risk. We find that savings significantly respond to changes in income risk, also across generations. This finding is robust to several checks and displays heterogeneity across countries, which is consistent with substitutability between private and public insurance tools.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	Wiley
ISSN:	0305-9049
Date of First Compliant Deposit:	19 October 2021
Date of Acceptance:	2 August 2021
Last Modified:	08 May 2023 02:28
URI:	https://orca.cardiff.ac.uk/id/eprint/144052

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