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Does job insecurity affect household consumption? / Andrew Benito

By: Material type: TextTextSeries: Documento de trabajo (Banco de Espana) ; 0225,Publication details: Madrid : Banco de Espana, 2002Description: 43σ. ; 24εκISBN:
  • 8477938180
Subject(s): DDC classification:
  • 331.25960941 21 εκδ.
Other classification:
  • 13.01.3
Abstract: The parer confronts a key implications of the precautionary model of saving/consumption, using micro-data on British households. The results provide support for the key proposition that job insecurity affects consumption. A one standard deviation increase in unemployment risk for the head of household is estimated to reduced consumption by 2.7 per cent. This effect is greater for the young, those without non-labour income and manual workers-for whom precautionary effects might be expected to be stronger a priori. Consumer durables purchases are also found to be inversely related to unemployment risk
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Item type Current library Collection Call number Copy number Status Date due Barcode
Books Books Βιβλιοθήκη ΟΜΕΔ Βιβλιοθήκη Κύρια Συλλογή 331.25960941 BEN (Browse shelf(Opens below)) 1 Available 031000001818

The parer confronts a key implications of the precautionary model of saving/consumption, using micro-data on British households. The results provide support for the key proposition that job insecurity affects consumption. A one standard deviation increase in unemployment risk for the head of household is estimated to reduced consumption by 2.7 per cent. This effect is greater for the young, those without non-labour income and manual workers-for whom precautionary effects might be expected to be stronger a priori. Consumer durables purchases are also found to be inversely related to unemployment risk

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