IDEAS home Printed from https://ideas.repec.org/a/sae/mareco/v4y2010i1p49-77.html
   My bibliography  Save this article

The Determinants of Demand for Life Insurance in an Emerging Economy—India

Author

Listed:
  • Preeti Kakar

    (National Council for Applied Economic Research, Parisila Bhavan, 11 Indraprastha Estate, New Delhi 110002; e-mail: pkakar@ncaer.org)

  • Rajesh Shukla

    (National Council for Applied Economic Research, Parisila Bhavan, 11 Indraprastha Estate, New Delhi 110002; e-mail: rkshukla@ncaer.org)

Abstract

Social security is virtually non-existent in India. While governments play a role providing some security to poor households (through the public distribution system targeted at households below the poverty line), in general financial security remains the responsibility of individuals. Life insurance is one of the most important social security measures undertaken in the country. Based on primary data generated through the National Council of Applied Economic Research’s (NCAER) National Survey of Household Income and Expenditure (NSHIE), this article attempts to identify determinants of life insurance ownership in the country. An analysis using logistic regression has corroborated that insured households tend to be more prosperous, more educated and more optimistic about future security than non-insured households. Both the level of education and occupation of the chief earner of a household are major determinants of life insurance participation, apart from asset-ownership. Further, households that are more optimistic about the adequacy of future income and savings show higher levels of participation. No rural–urban divide has been noticed with respect to these influencing factors.

Suggested Citation

  • Preeti Kakar & Rajesh Shukla, 2010. "The Determinants of Demand for Life Insurance in an Emerging Economy—India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 4(1), pages 49-77, January.
    • Handle: RePEc:sae:mareco:v:4:y:2010:i:1:p:49-77
    DOI: 10.1177/097380100900400103
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/097380100900400103
    Download Restriction: no
    File URL: https://libkey.io/10.1177/097380100900400103?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chuang, Hwei-Lin, 1997. "High school youths' dropout and re-enrollment behavior," Economics of Education Review, Elsevier, vol. 16(2), pages 171-186, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel O. Beltran & Kuntal K. Das & Robert W. Fairlie, 2008. "Are Computers Good for Children? The Effects of Home Computers on Educational Outcomes," CEPR Discussion Papers 576, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    2. Bjerk, David, 2012. "Re-examining the impact of dropping out on criminal and labor outcomes in early adulthood," Economics of Education Review, Elsevier, vol. 31(1), pages 110-122.
    3. Rossella Iraci Capuccinello, 2014. "Determinants and timing of dropping out decisions: evidence from the UK FE sector," Working Papers 15742191, Lancaster University Management School, Economics Department.
    4. Light, Audrey & McGee, Andrew, 2015. "Does employer learning vary by schooling attainment? The answer depends on how career start dates are defined," Labour Economics, Elsevier, vol. 32(C), pages 57-66.
    5. Fairlie, Robert W., 2005. "The effects of home computers on school enrollment," Economics of Education Review, Elsevier, vol. 24(5), pages 533-547, October.
    6. Xinxin Chen & Yaojiang Shi & Di Mo & James Chu & Prashant Loyalka & Scott Rozelle, 2013. "Impact of a Senior High School Tuition Relief Program on Poor Junior High School Students in Rural China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 21(3), pages 80-97, May.
    7. Carlos Peraita & Margarita Pastor, 2000. "The Primary School Dropout in Spain: The Influence of Family Background and Labor Market Conditions," Education Economics, Taylor & Francis Journals, vol. 8(2), pages 157-168.
    8. Beltran, Daniel O. & Das, Kuntal K. & Fairlie, Robert W., 2006. "Do Home Computers Improve Educational Outcomes? Evidence from Matched Current Population Surveys and the National Longitudinal Survey of Youth 1997," IZA Discussion Papers 1912, Institute of Labor Economics (IZA).
    9. Alejandra Cox Edwards & Manuelita Ureta, 2003. "International Migration, Remittances, and Schooling: Evidence from El Salvador," NBER Working Papers 9766, National Bureau of Economic Research, Inc.
    10. Robert W. Fairlie & Daniel O. Beltran & Kuntal K. Das, 2010. "HOME COMPUTERS AND EDUCATIONAL OUTCOMES: EVIDENCE FROM THE NLSY97 and CPS," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 771-792, July.
    11. Carneiro. Juliana & Koppensteiner, Martin Foureaux & Menezes, Livia, 2024. "The Effect of Transitory Health Shocks on Schooling Outcomes : The case of dengue fever in Brazil," The Warwick Economics Research Paper Series (TWERPS) 1488, University of Warwick, Department of Economics.
    12. Andresen, Martin Eckhoff & Løkken, Sturla Andreas, 2020. "The Final straw: High school dropout for marginal students," MPRA Paper 106265, University Library of Munich, Germany.
    13. Sunday Emmanuel Olajide & Mohd Lizam, 2016. "Determining the Impact of Residential Neighbourhood Crime on Housing Investment Using Logistic Regression," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 2(12(17)), pages 6.8-6.6.17, December.
    14. Yunfan Yang & Huan Wang & Linxiu Zhang & Sean Sylvia & Renfu Luo & Yaojiang Shi & Wei Wang & Scott Rozelle, 2015. "The Han-Minority Achievement Gap, Language, and Returns to Schools in Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 63(2), pages 319-359.
    15. Juliana Carneiro & Martin Foureaux Koppensteiner & Lıvia Menezes, 2023. "The Effect of Dengue Fever on Schooling Outcomes," School of Economics Discussion Papers 1423, School of Economics, University of Surrey.
    16. Rumberger, Russell W. & Lamb, Stephen P., 2003. "The early employment and further education experiences of high school dropouts: a comparative study of the United States and Australia," Economics of Education Review, Elsevier, vol. 22(4), pages 353-366, August.
    17. Rossella Iraci Capuccinello & Steve Bradley, 2014. "The effect of college mergers on student dropout behaviour," Working Papers 64907218, Lancaster University Management School, Economics Department.

    More about this item

    Keywords

    Life Insurance; Logistic Regression; Logit Analysis; JEL Classification: C31; JEL Classification: C35; JEL Classification: C80; JEL Classification: G22;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:mareco:v:4:y:2010:i:1:p:49-77. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ncaer.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.