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Examining the Dynamics of Saving Inequality between 1995 and 2018: Evidence from 10 Western Countries

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  • Moawad, Jad

Abstract

Previous research has focused primarily on income and wealth inequalities, with less emphasis on saving behavior which is one of the key mechanisms linking these components. This study examines the extent of disparities in household saving behavior across Western countries and how these disparities have evolved over the past two decades. Using data from the Luxembourg Wealth Study (LWS), the most comprehensive dataset on saving behavior to date, this analysis covers 10 countries between 1995 and 2018. The analysis yields three key findings. First, saving inequalities are most pronounced in Spain, Finland, Italy, and the United States. However, the baseline of likelihood of saving among low-income earners vary significantly. Bottom quartile earners in the United States and Finland report saving behavior eight times higher than their counterparts in Italy, and twice that of Spain. Second, saving behavior correlates more strongly with a country's economic performance than with its welfare state or social expenditure levels. Third, the financial crisis impacted saving behavior differently across countries. It reduced saving for all economic strata in Italy and Slovakia, while increasing saving inequalities in Austria, Spain, and the United States.

Suggested Citation

  • Moawad, Jad, 2025. "Examining the Dynamics of Saving Inequality between 1995 and 2018: Evidence from 10 Western Countries," OSF Preprints 9kwfp_v1, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:9kwfp_v1
    DOI: 10.31219/osf.io/9kwfp_v1
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