Arbeitspapier
Income inequality and saving
Over the last three decades, average income for the bottom half of the US distribution increased by 8% while their average saving rate decreased by eight percentage points. Over the same period the US experienced a substantial increase in inequality and a continuous decrease in the aggregate saving rate. We propose an explanation based on interpersonal comparisons consistent with these trends. When households care about their consumption relative to others, individual saving rates decrease with reference income while aggregate saving decreases with income inequality. We provide evidence from the PSID and a panel of OECD countries consistent with these predictions.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 7083
- Klassifikation
-
Wirtschaft
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Macroeconomics: Consumption; Saving; Wealth
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
- Thema
-
relative consumption
income inequality
saving
Einkommensverteilung
Einkommenshypothese
Konsuminterdependenz
Sparen
Schätzung
USA
OECD-Staaten
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Alvarez-Cuadrado, Francisco
el Attar, Mayssun
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute for the Study of Labor (IZA)
- (wo)
-
Bonn
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Alvarez-Cuadrado, Francisco
- el Attar, Mayssun
- Institute for the Study of Labor (IZA)
Entstanden
- 2012
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