Examining the Dynamics of Saving Inequality between 1995 and 2018: Evidence from 10 Western Countries

Jad Moawad ()
Additional contact information
Jad Moawad: Department of Social Policy and Intervention, University of Oxford

INET Oxford Working Papers from Institute for New Economic Thinking at the Oxford Martin School, University of Oxford

Abstract: Previous research has focused primarily on income and wealth inequalities, with less emphasis on saving behavior which is one of the key mechanisms linking these components. This study examines the extent of disparities in household saving behavior across Western countries and how these disparities have evolved over the past two decades. Using data from the Luxembourg Wealth Study (LWS), the most comprehensive dataset on saving behavior to date, this analysis covers 10 countries between 1995 and 2018. The analysis yields three key findings. First, saving inequalities are most pronounced in Spain, Finland, Italy, and the United States. However, the baseline of likelihood of saving among low-income earners vary significantly. Bottom quartile earners in the United States and Finland report saving behavior eight times higher than their counterparts in Italy, and twice that of Spain. Second, saving behavior correlates more strongly with a country's economic performance than with its welfare state or social expenditure levels. Third, the financial crisis impacted saving behavior differently across countries. It reduced saving for all economic strata in Italy and Slovakia, while increasing saving inequalities in Austria, Spain, and the United States.

Keywords: Saving Behavior; Welfare States; Financial crisis; Cumulative advantage (search for similar items in EconPapers)
JEL-codes: D14 E21 H55 I38 P52 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2024-10
References: Add references at CitEc
Citations:

Downloads: (external link)
https://oms-inet.files.svdcdn.com/production/files ... WP.pdf?dm=1729610268 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:amz:wpaper:2024-08

Access Statistics for this paper

More papers in INET Oxford Working Papers from Institute for New Economic Thinking at the Oxford Martin School, University of Oxford Contact information at EDIRC.
Bibliographic data for series maintained by INET Oxford admin team ().