Intergenerational Precautionary Saving in Europe

Francesco Scervini and Serena Trucchi

No 2019:13, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: This paper examines the interaction between altruism towards offspring and precautionary savings. It investigates whether increased uncertainty in children labor income fosters savings of parents. We first construct a two-periods and two-generations model, to underline which are the mechanisms behind the intergenerational precautionary motive for savings. Second, we exploit two micro datasets to test the main theoretical implications. Parents' consumption turns out to respond to the offspring's income risk. This result is robust to the presence of family fixed effects and to many alternative empirical specifications.

Keywords: Precautionary savings; consumption; income risk; offspring (search for similar items in EconPapers)
JEL-codes: C23 D13 D15 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2019
New Economics Papers: this item is included in nep-bec, nep-dge and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.unive.it/web/fileadmin/user_upload/dip ... ni_trucchi_13_19.pdf First version, anno (application/pdf)

Related works:
Journal Article: Intergenerational Precautionary Savings in Europe (2022)
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:ven:wpaper:2019:13

Access Statistics for this paper

More papers in Working Papers from Department of Economics, University of Venice "Ca' Foscari" Contact information at EDIRC.
Bibliographic data for series maintained by Sassano Sonia ().