Do the rich save more in Latin America?

Type Journal Article - The Journal of Economic Inequality
Title Do the rich save more in Latin America?
Volume 15
Issue 1
Publication (Day/Month/Year) 2017
Page numbers 75-92
In this paper we follow two strategies to address whether the rich save more. First, we implement a two stage procedure were we instrument the household’s lifetime income with the education level of the household head and the education level of its partner. Second, using information on home assets we construct a wealth index. We find evidence that the richest save more in Argentina, Bolivia, Brazil, Costa Rica, Ecuador, Honduras, Mexico, Panama, Paraguay and Peru. On the other hand, we do not find differences in saving rates by lifetime income or wealth in Bahamas, Chile, Colombia and Uruguay.

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