Abstract
The high savings of Chinese families is a widely concerned issue. This paper attempts to explain the high savings of Chinese families from the perspective of female labor participation. Firstly, the relationship between female labor participation and household savings rate is theoretically discussed, and then an empirical test is conducted using the 2017 China Household Financial Survey data. In order to overcome the endogenous influence, the labor participation rate of other married women in the same community and the same age group is used as a tool variable for labor participation of married women in the family, and the influence of labor participation of married women on household savings rate is empirically tested. The results of the study show that labor participation of married women significantly increases household savings rates. Heterogeneity analysis found that married women’s labor participation had a significant impact on the 20- to 30-year-old female family, university and higher education levels, and the savings rate of families who would like be with two children. Further research found that married women’s labor participation in promoting the increase in household savings rate is due to a significant increase in household income levels, while household consumption levels have not changed significantly. At the same time, the current female labor participation did not significantly reduce the family’s preventive saving motivation, but further increased the household savings rate. This paper provides a new perspective for understanding the high savings of Chinese families and can provide a reference for future policy development.
Highlights
In recent years, China’s economic growth rate has been slowing down, and the economic growth rate has dropped from 10.4% in 2010 to 6.6% in 2018
Further research found that married women participate in labor, the income level of the family has increased significantly, but the level of household consumption has not changed significantly; the labor participation of married women does not significantly reduce the family’s preventive saving motivation, and enhances the family’s prevention savings motivation
Because married women participate in labor with self-selection characteristics, in order to avoid selective bias in the sample, propensity score matching (PSM) is used to test the robustness of the estimation method
Summary
China’s economic growth rate has been slowing down, and the economic growth rate has dropped from 10.4% in 2010 to 6.6% in 2018. Judging from the existing literature, there is very little research on the household savings rate from the perspective of labor participation of married women, which has become the direction of this article. How do married women participate in labor, and how will household consumption, income and savings change? The increase in income brought by labor participation of married women is greater than the increase in consumption, and the household savings rate increases. This paper uses the latest Chinese household financial survey data to study the impact of married women’s labor participation on household savings rate from a micro perspective. This paper discusses in detail the differences in the impact of married women’s labor participation on the savings rate of different groups It further analyzes the reasons why the labor participation of married women promotes the increase of household savings rate. The rest of the rest is arranged as follows: The second part reviews the relevant literature of this article; the third part is the theoretical model analysis; the fourth part is the model setting and variable description; the fifth part is the empirical result analysis; the sixth part is the robustness test; the seventh part is the heterogeneity analysis; the eighth part is the further discussion conclusions and countermeasures
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