Saving and Consumption When Children Move Out

Konferenzbeitrag

Based on the German Socio-economic Panel (SOEP), we show that household consumption drops and saving rises significantly within four years after a child moves out of a household. Per capita consumption of parents is approximately leveled up to that of childless peers after all children are gone. We conclude with respect to the adequacy of saving rates that calibrated life-cycle models assuming a smoothing of per capita consumption for parents with children in the household underestimate the wealth needed to smooth consumption in the long run.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung - Session: Household Behavior ; No. C12-V3

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Empirical Analysis ; Household Saving; Personal Finance ; Household Behavior: General

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Klos, Alexander ; Rottke, Simon
• Event: Veröffentlichung
• (who): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel und Hamburg
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/79786
• Last update: 10.03.2025, 11:45 AM CET