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Money for him but books for her: The impact of children's gender and adulthood on household savings in China

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  • Liu, Jianan
  • Fan, Jijian

Abstract

We examine the impact of chilren's gender and adulthood on household savings decisions in the context of China's demographic transition. Using a nationwide survey dataset, we find that the positive correlation between sons and savings can be attributed to greater investment in education for adult daughters. This result is mainly driven by low-educated and uninsured families. This paper emphasizes the source of gender differences in intra-household resource allocation and sheds light upon the trade-off between savings and human capital investments for offsprings.

Suggested Citation

  • Liu, Jianan & Fan, Jijian, 2024. "Money for him but books for her: The impact of children's gender and adulthood on household savings in China," Economics Letters, Elsevier, vol. 237(C).
    • Handle: RePEc:eee:ecolet:v:237:y:2024:i:c:s0165176524001575
    DOI: 10.1016/j.econlet.2024.111674
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    References listed on IDEAS

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    1. Shang-Jin Wei & Xiaobo Zhang, 2011. "The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China," Journal of Political Economy, University of Chicago Press, vol. 119(3), pages 511-564.
    2. Lugauer, Steven & Ni, Jinlan & Yin, Zhichao, 2019. "Chinese household saving and dependent children: Theory and evidence," China Economic Review, Elsevier, vol. 57(C).
    3. Marcos D. Chamon & Eswar S. Prasad, 2010. "Why Are Saving Rates of Urban Households in China Rising?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 93-130, January.
    4. Zhou, Weina, 2014. "Brothers, household financial markets and savings rate in China," Journal of Development Economics, Elsevier, vol. 111(C), pages 34-47.
    5. Chadwick C. Curtis & Steven Lugauer & Nelson C. Mark, 2015. "Demographic Patterns and Household Saving in China," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(2), pages 58-94, April.
    6. Bollinger, Christopher & Ding, Xiaozhou & Lugauer, Steven, 2022. "The expansion of higher education and household saving in China," China Economic Review, Elsevier, vol. 71(C).
    7. Fang, Jiali & Liu, Na & de Bruin, Anne & Wongchoti, Udomsak, 2022. "The salience of children to household financial decisions," Journal of Banking & Finance, Elsevier, vol. 139(C).
    8. Avraham Ebenstein & Steven Leung, 2010. "Son Preference and Access to Social Insurance: Evidence from China's Rural Pension Program," Population and Development Review, The Population Council, Inc., vol. 36(1), pages 47-70, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Household savings; Human capital investments; Educational spending; Gender difference; China;
    All these keywords.

    JEL classification:

    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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