Assessing the household saving behavior of urban and rural households in Pakistan: Evidence from PSLM/HIES 2018-19

Authors

  • Maria Aslam Lahore College for Women University, Lahore, Pakistan.
  • Sehar Saleem Lahore College for Women University, Lahore, Pakistan.
  • Warda Mukhtar Lahore College for Women University, Lahore, Pakistan.
  • Rehana Firdous University of the Punjab, Lahore, Pakistan.

DOI:

https://doi.org/10.52131/pjhss.2022.1004.0299

Keywords:

Saving, Income, Education levels, Socioeconomic, Demographic characteristics, Household

Abstract

The purpose of this article is to examine household saving behavior in urban and rural areas of Pakistan. The study obtained microdata from the Household Integrated Economic Survey (HIES) 2018-19 and Pakistan Social Living Standards Measurements Survey (PSLM) 2018-19 conducted by the Pakistan Bureau of Statistics (PBS). A nationally representative sample of 5499 households is selected, 3155 from rural areas and 2344 from urban areas by using systematic sampling. The impact of socioeconomic and demographic characteristics on household saving behavior is investigated by applying a multiple linear regression model through Ordinary Least Squares (OLS) estimation method. A strong relationship between household saving behavior and socioeconomic and demographic characteristics is observed. Income has a positive impact on household savings, but age, dependency ratio, and family size have a negative effect. Furthermore, it is found that as the household income rises, their savings rise as well. Although, people residing in rural areas tend to save more amount contrary to urban households. However, saving rates of household with large families exhibited a decline in saving. Government should introduce new saving schemes in banks and reduce non-development expenditures for productive plans. It will provide motivation for domestic saving and an upsurge in employment opportunities.

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Author Biographies

Maria Aslam, Lahore College for Women University, Lahore, Pakistan.

Department of Statistics

Sehar Saleem, Lahore College for Women University, Lahore, Pakistan.

Department of Statistics

Warda Mukhtar, Lahore College for Women University, Lahore, Pakistan.

Department of Statistics

Rehana Firdous, University of the Punjab, Lahore, Pakistan.

Department of Economics

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Published

2022-12-31

How to Cite

Aslam, M. ., Saleem, S., Mukhtar, W. ., & Firdous, R. . (2022). Assessing the household saving behavior of urban and rural households in Pakistan: Evidence from PSLM/HIES 2018-19. Pakistan Journal of Humanities and Social Sciences, 10(4), 1439–1446. https://doi.org/10.52131/pjhss.2022.1004.0299

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Section

Articles