Voluntary retirement savings in China: A spatial ordered probit approach

IF 3.5 2区经济学 Q1 ECONOMICS

Regional Science and Urban Economics Pub Date : 2025-02-03 DOI:10.1016/j.regsciurbeco.2025.104090

Yong Bao , Timothy N. Bond , Ruiting Sun , Xueping Xiong

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引用次数: 0

Abstract

This paper employs a spatial ordered probit model to study people’s voluntary retirement savings decisions using survey data collected in 2017 in China, where savings are recorded in a set of discrete ordered categories. To account for spillover effects and cross-sectional correlations, induced by for example omitted factors, we construct spatial connectivity matrices based on age and education for people located in the same province. We estimate the model using a Bayeisan scheme and discuss how to calculate various marginal effects, including those from nonstandard covariates like squared, binary, and multicategorical variables. Our empirical results indicate strong evidence of positive correlation in voluntary retirement savings decisions among high-income and low-income workers in both rural and urban areas. We find that participation in the government-managed basic pension is the strongest predictor of having high voluntary retirement savings, while the effects of income and gender vary across income-area groups.

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来源期刊

Regional Science and Urban Economics Multiple-

CiteScore

5.30

自引率

9.70%

发文量

期刊介绍： Regional Science and Urban Economics facilitates and encourages high-quality scholarship on important issues in regional and urban economics. It publishes significant contributions that are theoretical or empirical, positive or normative. It solicits original papers with a spatial dimension that can be of interest to economists. Empirical papers studying causal mechanisms are expected to propose a convincing identification strategy.