Precautionary Wealth and Financial Access : Evidence from Afghanistan
Households accumulate wealth as a reserve against unexpected contingencies. We employ a detailed household survey in Afghanistan to study how non-housing wealth accumulation of households varies with labor income uncertainty. We find that households facing higher income uncertainty accumulate si...
| Main Authors: | , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/334701522101910190/Precautionary-wealth-and-financial-access-evidence-from-Afghanistan http://hdl.handle.net/10986/30040 |
| Summary: | Households accumulate wealth as a reserve against unexpected
contingencies. We employ a detailed household survey in Afghanistan to
study how non-housing wealth accumulation of households varies with labor
income uncertainty. We find that households facing higher income
uncertainty accumulate significantly larger quantities of non-housing wealth.
Exploiting variation in availability of banks and micro-finance institutions
across provinces, we find lower wealth accumulation in provinces having
better access to financial institutions. |
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