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Determinants of Formal and Informal Saving in Colombia

In: Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean

Author

Listed:
  • Ana María Iregui-Bohórquez

    (Banco de la República de Colombia)

  • Ligia Alba Melo-Becerra

    (Banco de la República de Colombia)

  • María Teresa Ramírez-Giraldo

    (Banco de la República de Colombia)

  • Ana María Tribín-Uribe

    (Banco de la República de Colombia)

Abstract

In this paper we perform an empirical study of the determinants of saving among middle- and low-income individuals living in urban and rural areas of Colombia. The results show that the likelihood of saving increases with education, income, labor market participation, and home ownership. The results also demonstrate that education and income increase the probability of saving in banks and decrease the likelihood of informal saving in both urban and rural areas.

Suggested Citation

  • Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2018. "Determinants of Formal and Informal Saving in Colombia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean, edition 1, volume 1, chapter 4, pages 95-123, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    • Handle: RePEc:cml:incocp:7en-04
    Note: Joint Research Program of the Central Bank Researchers Network
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    References listed on IDEAS

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    Cited by:

    1. Ruiz, Freddy & Lugilde, Alba, 2019. "Decent work and the effect of job instability on consumption of Colombian households," MPRA Paper 92717, University Library of Munich, Germany.
    2. Granda, Catalina & Hamann, Franz & Tamayo, Cesar E., 2019. "Credit and saving constraints in general equilibrium: A quantitative exploration," Journal of Development Economics, Elsevier, vol. 140(C), pages 302-319.

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