Population Aging and Households’ Saving in the Russian Federation
Using household data from the Russian Longitudinal Monitoring Survey, this paper assesses how aging affects saving. To overcome a systematic bias against the life-cycle hypothesis of survey data, the paper estimates how the age profile of saving ch...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/10/25159413/population-aging-households’-saving-russian-federation http://hdl.handle.net/10986/22874 |
| Summary: | Using household data from the Russian
Longitudinal Monitoring Survey, this paper assesses how
aging affects saving. To overcome a systematic bias against
the life-cycle hypothesis of survey data, the paper
estimates how the age profile of saving changes when the
micro data are corrected to account for the contribution to
pensions (as additional saving) and receipt of benefits from
pensions (as dissaving). With these corrections, the Russian
data support the life-cycle hypothesis. A small decline in
the aggregate saving rate, because of aging, can thus be
expected. However, since aggregate saving rates result from
a combination of age and cohort effects, this decline may
not be significant. When extrapolating the rising trends of
the cohort effect, the fact that younger generations are
earning and saving more than older generation at the same
age, the projection shows a growing aggregate saving rate.
The changes in saving of future cohorts, for example because
of changes in the growth rate of the economy, can affect the
aggregate saving rate even more than aging. |
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