Demographic Change and Private Savings in India

Neha Jain and Srinivas Goli

MPRA Paper from University Library of Munich, Germany

Abstract: India is on the edge of a demographic revolution with a rapidly rising working-age population. For the first time in this study, we investigate the role of the rising working-age population on per capita small savings in post offices and banks net of socio-economic characteristics using state-level panel data compiled from multiple sources for the period 2001-2018. Our comprehensive econometric assessment with multiple robustness checks provide three key findings: (1) Per capita private savings is increasing because of India’s growing working-age population, thus the ‘economic life cycle hypothesis’ is supported. (2) The demographic factors contribute around one-fourth of the per capita private savings inequality across Indian states. (3) The demographic window of economic opportunity for India can yield maximum benefits in terms of private savings when accompanied by favourable socio-economic policies on education, health, gender equity, and economic growth.

Keywords: Demographic change; Working age population; Private savings; Life cycle hypothesis; State-level analysis (search for similar items in EconPapers)
JEL-codes: J1 J11 O1 O15 O16 (search for similar items in EconPapers)
Date: 2021-02-15
New Economics Papers: this item is included in nep-age, nep-cwa, nep-fdg, nep-gro and nep-isf
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Related works:
Journal Article: Demographic change and private savings in India (2022)
Working Paper: Demographic Change and Private Savings in India (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:109561

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