Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/51390
Authors: 
Ahrens, Alexander
Year of Publication: 
2011
Series/Report no.: 
IAAEG discussion paper series 04/2011
Abstract: 
Intertemporal decision making of a private household depends on its expected income distribution. Since an important feature of labour market institutions in modern welfare states is to provide cash transfers as income replacement in case of unemployment, it is hypothesised that unemployment benefits reduce the motive to save for precautionary reasons. Based on consumer sentiment data from the European Commission's consumer survey, this paper provides evidence that aggregate saving intentions are significantly influenced by unemployment benefits. It can be shown that higher benefits lower the intention to save.
Subjects: 
Labour market institutions
Unemployment benefits
Precautionary savings
Consumer confidence
JEL: 
J65
E21
D12
D84
Document Type: 
Working Paper

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