Do the rich save more in Latin America?
The Journal of Economic Inequality, 2017, vol. 15, issue 1, No 4, 75-92
Abstract This paper reports evidence that the savings rate of the rich is higher than that of the poor in Brazil, Chile, Costa Rica, Ecuador, Honduras, Mexico, Panama, Paraguay and Peru. On average, the difference between the fifth and fourth income quintile groups is 7 percentage points. No differences between income groups are found in Uruguay and the results for Argentina and Colombia are not robust to estimation alternatives. The key methodological step is to construct a measure of lifetime income. Current income is not a good proxy since it is affected by phases of the life cycle and transitory shocks. We implement a two-stage procedure based on the education level of the household head and the education level of his/her partner. Several robustness exercises are reported for different age groups, inclusion/exclusion of outliers and for a wealth index based on homeownership, home appliances and other household owned assets.
Keywords: Savings rates; Two-stage estimation; Median regressions; Latin America (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10888-016-9345-3 Abstract (text/html)
Access to full text is restricted to subscribers.
Journal Article: Do the rich save more in Latin America? (2017)
Working Paper: Do the Rich Save More in Latin America? (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:jecinq:v:15:y:2017:i:1:d:10.1007_s10888-016-9345-3
Ordering information: This journal article can be ordered from
http://www.springer. ... th/journal/10888/PS2
Access Statistics for this article
The Journal of Economic Inequality is currently edited by Stephen Jenkins
More articles in The Journal of Economic Inequality from Springer, Society for the Study of Economic Inequality Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().