Abstract
The Household saving in China underwent dramatic changes over the Past two decades. There have been some pervious studies about the savings behavior of urban household in China. But neither of them is enough to answer the question of what the true saving rate of urban household is all about.To examine saving behavior in china, it is essential to separate the rural and urban sectors because, as it will be seen below, different institutions and motives apply in each case. The purpose of this paper is to present an empirical study on urban household saving behavior in China. We focus on the Chinese social security system, which may have lowered saving rate by adopting non-monetary income. Our findings support the conjecture that regime shifts do play an important role in influencing Chinese urban household savings behavior.
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