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Subsistence Savings Strategies of Male- and Female-Headed Households: Evidence from Mexico

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  • Julia Paxton

    (Department of Economics, Ohio University, 329 Bentley Annex, Athens, OH 45701, USA.)

Abstract

Analysis of 2,029 Mexican households reveals that the rural poor can and do save using multiple savings strategies. Female-headed households hold more liquid family consumption assets, such as small animals and grain, and invest more in their homes whereas male-headed households save more in financial and quasi-liquid assets. The family composition including the number of dependents is an important determinant of liquid and total assets. Male-headed households are more likely to increase liquid savings after shocks and utilize financial instruments such as credit and insurance to build assets. Age and remittances are strong determinants of savings in female-headed households. Eastern Economic Journal (2009) 35, 209–231. doi:10.1057/eej.2008.12

Suggested Citation

  • Julia Paxton, 2009. "Subsistence Savings Strategies of Male- and Female-Headed Households: Evidence from Mexico," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 35(2), pages 209-231.
    • Handle: RePEc:pal:easeco:v:35:y:2009:i:2:p:209-231
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    Cited by:

    1. Edyta Marcinkiewicz, 2018. "Does the retirement saving motive foster higher savings? The evidence from the Polish household survey," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(1), pages 85-96, January.
    2. Paxton, Julia & Young, Lauren, 2011. "Liquidity Profiles of Poor Mexican Households," World Development, Elsevier, vol. 39(4), pages 600-610, April.

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